Almost three years after Wallonia’s devastating floods, the majority of insurance claims have been settled – but a more sustainable compensation system for natural disasters is needed from the government, says the association of insurers in Belgium, Assuralia.
In July 2021, many areas across the Walloon region were impacted by heavy floods. The natural disaster caused an estimated €2.5 billion in damage and took the lives of 39 people.
To respond to the emergency, a full compensation scheme was agreed upon by insurers and the Walloon Region; Insurance companies doubled their maximum legal compensation and guaranteed a zero-interest loan to the region.
According to Assuralia, by the end of March 2024, most of the 74,000 (98.9%) insured claims had been processed, with 94.1% fully closed and compensated. For 4.8% of cases, 80% of the damages were compensated, while the remaining 20% will be paid following the presentation of invoices of the repair work carried out. The last 1.1% of open claims mostly involve the local authorities.
"The situation three years ago was unprecedented, but the solution found cannot be repeated in the future," said Assuralia CEO, Hein Lannoy, "to keep premiums affordable, we are calling for a partnership between our industry and the public authorities."
Assuralia proposes that the burden of costs of compensation is shared between insurers, the regions, and federal authorities, with the possibility of interventions at a European level, says Lannoy.
"It is essential to support this message, particularly now that our government is being formed after the last elections. The public must be assured that they are properly protected [...] through effective cooperation between insurers and public authorities," Lannoy concluded.
Last May, Belgium’s National Bank also called for a clearer framework for the distribution of the compensation costs for damages caused by natural disasters. It emphasised that if this was not addressed, insurance companies could reduce natural disaster coverage or increase premiums in the future.
