German residential property insurance market overview and proposed natural hazard coverage

The German residential property insurance market reached approximately 14.35 billion euros in gross premiums in 2025, according to data from the German Insurance Association (GDV). The market consists of roughly 19.2 million contracts, representing a 0.1 percent decrease in volume when adjusted for population changes.

Allianz leads the market in both policy count, with over 2.3 million contracts, and premium income. Other major players include SV Sparkassenversicherung Gebäudeversicherung AG, Bayerische Landesbrandversicherung AG, Provinzial Versicherung AG, and R+V Allgemeine Versicherung AG. The top 50 market participants account for approximately 95 percent of the market share.

Separately, the German Federal Ministry of Justice and the Federal Ministry of Finance are proposing new legislative requirements to expand coverage for natural hazards such as floods and heavy rain. While 98 percent of homeowners hold residential property insurance, only 59 percent are currently covered against elemental risks. The proposed changes aim to mandate that new insurance contracts include coverage for natural hazards to mitigate the average annual damage of two billion euros caused by extreme weather events.