Home insurance premiums are rising for properties in climate-vulnerable zones across Denmark. Insurance company Gjensidige has introduced a new pricing model that factors climate risk directly into insurance costs.
Maria Droob, the company's product chief, explained the approach in a recent interview. She said insurance principles require that the majority should not pay for everyone's risks. The new model allows for more individualized pricing based on specific property risks.
This change means homeowners in flood-prone coastal areas or properties susceptible to storm damage will likely see higher premiums. The insurance industry is adapting to increasing climate-related claims across Scandinavia.
Insurance companies now use advanced mapping technology to assess climate vulnerability. They analyze flood zones, coastal erosion risks, and storm patterns. This data helps determine which properties face the greatest climate threats.
Danish homeowners should review their insurance coverage and understand their property's specific climate risks. Properties near coastlines or in low-lying areas may need additional protection.
The insurance shift reflects broader climate adaptation challenges facing Nordic countries. As extreme weather events increase, both homeowners and insurers must adjust to new realities.
This pricing model could spread to other Nordic insurance markets. Norway and Sweden face similar climate challenges with coastal flooding and severe storms.