Timber Trouble: German Sawmill Industry Faces Insurance Rate Plunge, Raising Concerns in the Timber Sector

"German Sawmill and Wood Industry Association Raises Concerns Over Insurance Companies Pulling Out of Fire Protection Coverage"

The German Sawmill and Wood Industry Association (DeSH) has raised concerns about the findings of a recent survey on fire protection insurance. According to DeSH, an increasing number of companies in the industry are facing difficulties in obtaining new contracts or having their existing ones terminated. This trend could have devastating consequences for the operations and future sustainability of the regional forestry and wood cluster, which plays a vital role in both the economy and the environment.

DeSH is urging insurance companies to reconsider their approach and avoid withdrawing from the industry altogether. The association is calling for greater cooperation, flexibility, and a reduction in bureaucratic processes on the part of insurers. It believes that a more collaborative approach is needed to ensure the continued success and growth of the sawmilling and timber industry.

One of the key issues highlighted by DeSH is the decline in insurance rates since 2021. This has made it increasingly difficult for companies in the industry to obtain affordable coverage for fire protection. Without adequate insurance, businesses are at risk of significant financial losses in the event of a fire, which could potentially lead to their closure.

The sawmilling and timber industry is an important sector for both the German economy and the environment. It provides employment opportunities in rural areas and contributes to sustainable forestry practices. The industry also plays a crucial role in reducing carbon emissions by promoting the use of wood as a renewable and climate-friendly material.

The withdrawal of insurance companies could have far-reaching consequences for the industry. Without access to affordable and comprehensive coverage, companies may struggle to secure financing for new projects or investments. This, in turn, could hinder the growth and development of the regional forestry and wood cluster.

DeSH is urging insurance companies to recognize the value and importance of the sawmilling and timber industry. It is calling for a more proactive and supportive approach from insurers to ensure the continued viability of businesses in the sector. This includes offering competitive insurance rates, streamlining administrative processes, and providing tailored solutions that meet the specific needs of the industry.

In conclusion, the German Sawmill and Wood Industry Association (DeSH) is warning against the withdrawal of insurance companies from the industry. The decline in insurance rates has made it increasingly difficult for companies to obtain affordable coverage for fire protection. This could have devastating consequences for the industry, impacting its operations and future sustainability. DeSH is calling for greater cooperation, flexibility, and a reduction in bureaucracy on the part of insurers to address these challenges and ensure the continued success of the sawmilling and timber industry.

John O Mahony

John O Mahony

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