Following the hot summers of 2026, the Association of German Insurance Companies (GDV) is sounding the alarm about the consequences of climate change, urging both policymakers and the economy to take greater initiative. Jörg Asmussen, CEO of GDV, told the “Redaktionsnetzwerk Deutschland” that heat and drought caused severe damage to both society and the economy this summer.
Asmussen argued that extreme weather events should not only be addressed after the damage has occurred, but they must be systemically prevented. He emphasized the urgent need for infrastructure adapted to climate change, including transport routes and buildings, alongside a reliable supply of energy and water.
Beyond severe health impacts on many people, extreme heat also placed a burden on the economy. Based on evaluations from the GDV of current analyses, various institutes estimate that heat and drought could potentially reduce German economic growth in the third quarter by between 0.1 and 0.5 percentage points.
The insurers attribute this economic slowdown to several factors. Productivity declined as workers struggled under high temperatures, and the production of certain goods was affected by the heat. Furthermore, companies required more energy for cooling, leading to increased operating costs. Low water levels in major rivers also complicated the transport of goods.
The GDV reminds the public that heatwaves are becoming stronger and more frequent due to global warming, an effect that will continue to intensify as long as additional greenhouse gases, produced through the burning of coal, oil, and gas, are released into the atmosphere.
