More and more often, said the association, companies are not receiving new contracts or are having them terminated – with devastating consequences for operations and the future viability of the regional and climate-friendly forestry and wood cluster.
DeSH is calling for more co-operation, flexibility and less bureaucracy on the part of insurers.
“Since 2021, the insurance rate in the sawmilling and timber industry has fallen rapidly. More and more companies are confronted with layoffs, rising prices and bureaucratic requirements and feel abandoned by the insurance industry,” said DeSH managing director Lars Schmidt, commenting on the association’s member survey from the fourth quarter.
“Insurers’ requirements for technical measures to detect and fight fires are no longer feasible, especially for smaller, medium-sized businesses. In some cases, the required fire alarm systems and the deductibles exceed half of a company's annual turnover. But without insurance protection, there are neither loans nor investments – in the medium term, many companies are threatened with extinction and with it the risk of gaps in the important value chain from those who own forests to wood processing companies in trade and industry.
“Almost a quarter of those surveyed are currently not insured,” continued Mr Schmidt. “We view this development with great concern. While the insurance ratio was over 90% for a long time, contracts appear to have been deliberately reduced since last year. Several insurance companies have completely withdrawn from the industry, others are increasing premiums and deductibles to beyond the limits of what is possible.
“Companies with high technical fire protection standards and existing insurance coverage also complain about excessive bureaucratisation and are calling for new insurance concepts to prevent fires through hazard detection.”
Since classic fire protection systems no longer represent an insurance guarantee, DeSH is looking for alternatives.
“There are modern AI-controlled systems that impress with their effective fire prevention and also transparently and completely document the respective level of protection of the company. We are actively approaching the insurance companies with these solutions, but unfortunately so far, we have been unsuccessful,” said Mr Schmidt.
“Insurance conditions must not lead to the existence of entire parts of the industry being called into question. In order to re-establish reliable framework conditions, the DeSH is ready to develop flexible and sustainable solutions in co-operation with the insurers,” said Mr Schmidt.
