Allianz to lift ban on flood insurance in Germany

Allianz AG said it will lift its ban on writing new flood insurance policies in flood-ravaged areas of Germany soon.

In Bavaria, the ban will be lifted this week, Allianz spokesman Klaus Schmidtke told Deutsche Presse Agentur. In Saxony the ban should be lifted in the next two to three weeks, he said.

Earlier, the Bild am Sonntag newspaper reported that, following devastating flooding in parts of Germany, citizens in those areas could no longer insure themselves against floods.

It said policies could no longer be taken out against so-called "weather-related perils", such as flooding, avalanches and earthquakes.

Schmidtke said Allianz had only stopped insuring against floods in the most acute situations.

"When the water is already at the door, insurance cover is no longer possible," he said.

He said Allianz will not lift its prices as a direct result of the flooding, but it might have to reconsider if similar events keep re-occurring in the future.