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Prediction: Germany: The property and construction picture is evolving significantly

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Prediction

The global political upheaval is leading to geopolitical risk scenarios that will influence the scope of cover. The risk scenarios are diverse and differ not only according to the dimension of the violence exercised and the possible political objectives associated with it. General exclusions for war, sanctions clauses and territorial exclusions are becoming more relevant, including for business interruption and contingent business interruption. Climate change and natural hazards will also influence the claims picture, with legislative changes on climate-neutral transformation having a significant impact on risk and regulation. Inflation and rising prices are also causing insurance values to increase significantly, requiring adjustment to sums insured (to avoid underinsurance), limits, business interruption periods and premium increases.