Some 70% of Danish consumers are concerned that climate change will make it more expensive for them to insure their homes against potential flooding, a new study by Forsikring & Pension (F&P), conducted by Epinion, has found.
In addition, some two thirds of respondents fear that it will become more difficult to insure their homes against climate damage.
Climate protection
“Climate change has been very clearly and concretely demonstrated in Denmark in recent years, with record rainfall, storm surges and destroyed homes and assets, so it is completely understandable that Danish homeowners are worried and insecure,” commented Kent Damsgaard, CEO, F&P.
“That is why it is so important that even more work is done on climate protection and prevention. Climate protection costs money – but saves more the sooner we get started.”
F&P noted that in other parts of Europe, as well as the United States, insurance firms have withdrawn from areas that are exposed to severe storms, flooding and heatwaves, leaving households without a viable insurance option, or insurance that is so expensive no-one can afford to take it out.
“We haven’t reached that point in Denmark, and we won’t if we show timely care,” Damsgaard added. “Denmark is heading in the right direction with a significantly greater political focus on climate protection.”
Taking the initiative
He pointed to recent political announcements, such as new finance legislation, and an acceleration package for coastal protection that will direct close to DKK 2 billion to climate and coastal efforts through to 2029.
“It is clear that the government and the Folketing have taken this seriously and that they know it is urgent,” he added. “But it is not enough, because billions are needed for climate protection. The industry has called for a comprehensive plan for how and where to prevent and climate protection.”
Forsikring & Pension (F&P) is the Danish trade association for insurance companies and pension funds, representing some 84 companies and funds across Denmark. Read more here.
