Uniqa boss warns:

“Then prosperity will go down the drain”

The CEO of Uniqa, Andreas Brandstetter.

(Bild: Bartel Gerhard/Gerhard Bartel)

Uniqa CEO Andreas Brandstetter makes a dramatic appeal to politicians to take the consequences of climate change seriously and counter them economically. He calls for massive reforms.

"Krone": You yourself are affected by the floods with a small house in Kamptal. Is it possible to insure a society or a country against natural disasters?
Andreas Brandstetter: It is possible. Certain countries show us how: Belgium, France and Switzerland. The model that we presented to politicians in Austria some time ago is the Belgian model: for a few euros a month - about ten - everyone in Austria who has household insurance is insured against storms of any kind, disasters in summer or winter. The insurance covers 100 percent of the new value and not 20 percent of the current value, as is the case with the disaster fund.

Is that a good deal for you then?
It's not a deal for the insurance companies. If you look at it over the long term and natural disasters will happen more often, insurance companies will not get rich from it.

Why should I be insured if I don't run the risk of being affected by a flood if I live on the 5th floor of the 3rd district?
Because at some point, even the 3rd district in Vienna will be hit by natural disasters. The whole of Austria will be more affected by natural disasters in the coming years and decades. There could be other consequences of climate change, such as the massive increase in heat. We have been pointing out to governments and politicians for many, many years what is now happening in Austria: The consequences of climate change are here. This comes as no surprise to us.

There have always been severe weather and flooding disasters. Are they really increasing so dramatically in frequency and severity?
We know that one degree of warming means seven percent more humidity and therefore dramatically more heavy rainfall. Austria is the country in the world that is the fourth most affected by natural disasters in relation to its gross domestic product.

Why?
Because we are so exposed due to our topography: as a landlocked country with a very unfavorable continental location. We have to take the necessary measures to deal with the economic consequences of climate change. It is unthinkable that such damage is not insured.

Doesn't worry-free insurance mean that we let the reins of personal responsibility slip when it comes to flood and storm protection?
Prevention remains part of the problem. How will land be zoned in future? Kurt Weinberger from Hagelversicherung always rightly points out how much land in Austria is being concreted over. We also need to direct our investment flows differently. As the insurance industry, we are the largest investor in Europe, we have around eleven trillion euros in assets under management throughout Europe that we manage. In Austria, the figure is 100 billion euros. We want to invest these funds much more heavily in green assets: Solar, wind, water. Only if the approval procedures take seven, eight or nine years before a power plant is built will this green transformation not succeed.

That already sounds like a key demand for the future German government?
That is a proposal that we are discussing with all the vehemence we can muster.

Andreas Brandstetter was personally affected by the flooding in Kamptal (Lower Austria).

(Bild: Andreas Brandstetter)

Why did it fail? A Green infrastructure minister should not be far removed from such an argument?
I have respect for every person who is currently involved in politics at local, state or federal level. That requires a high level of resilience and a thick skin. As a business community, we wanted to commit to investing in more green assets, thereby accelerating the green transformation and at the same time supporting private pension provision by providing tax relief for customers. Not a chance.

That sounds angry?
What makes me angry is that something always has to happen before there are any consequences. We have to seriously ask: when are we going to tackle the reforms in this country? This ranges from pension provision to ageing with dignity, education and migration. We live in the beautiful house of Austria, which has become somewhat dilapidated and fragile over time. As a mature family man, I know that we urgently need to tackle repairs.

Do you remain optimistic?
When I look at the forecasts for 2025 in Austria, but also in Germany, there is little reason for optimism - if we carry on like this. We need to take countermeasures. Our prosperity will go down the drain if we do nothing. People can handle the truth. You just have to communicate it clearly.