17.12.2024 – 09:00
VKG / AECA
Berne (ots)
In Switzerland, earthquakes represent a considerable risk. The Swiss Seismological Service of the ETH Zurich estimates that an earthquake over a period of a century could cause damage of between 11 and 44 billion Swiss francs to buildings and their contents alone. It is therefore all the more worrying that nearly 85% of owners in Switzerland are not sufficiently financially covered against earthquakes. The destruction of “goods of existence” constitutes a real threat for many people. This is the reason why, during its meeting on December 13, 2024, the Federal Council adopted, for Parliament, the message on financing the repair of damage caused to buildings by earthquakes.
The Association of Cantonal Insurance Establishments (AECA) joins the Federal Council: it is convinced that the introduction of a system of conditional commitments in the event of an earthquake will strengthen protection against seismic risks in Switzerland. An effective and fair mechanism for financing possible damage caused by an earthquake, the system of conditional commitments also provides protection to both the population and the economy, without however imposing a recurring charge linked to premiums each year. insurance. As long as no earthquake damage occurs, no amount is collected from building owners. Only after a serious earthquake would the Confederation receive the authority to levy a contribution from building owners in Switzerland to finance the repair of damage caused to buildings. The amount of this contribution will be limited to a maximum of 0.7% of the insurance value of the buildings. Thus, some 22 billion francs could be mobilized in the future to cover damage to buildings. The system of conditional commitments therefore represents an economic solution, based on the principle of solidarity. After a disaster, all building owners collectively contribute to the financing, and it is the people affected who then benefit from this financial assistance.
The rapid provision of financial resources makes it possible, on the one hand, to rebuild quickly after a serious earthquake and, on the other hand, to mitigate the economic consequences of such an event. Indeed, each day without reconstruction would increase the economic and social damage. Michael Wieser, director of the AECA, believes that the system of conditional commitments constitutes a highly innovative product, perfectly suited for events which occur very rarely but which cause damage of a very large scale. According to the director of the AECA, in such conditions, it is extremely difficult for cantonal insurance establishments and private insurers to offer, in the event of an earthquake, comprehensive insurance coverage for acceptable and stable premiums. The proportion of owners insured against damage caused by earthquakes with private insurance has barely increased over the years and the compensation provided in this context after a serious earthquake is often limited. In view of these two realities, it is clear that the solution of the system of conditional commitments will offer Switzerland the best “shield”, and at the best price.
Contact:
Rolf Meier
Press service of the Association of Cantonal Insurance Establishments (AECA)
T +41 (0)31 320 22 82, [email protected]
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