Water Resilience Strategy: The EU Commits to Prevention

Jörg Asmussen, CEO of the German Insurance Association (GDV), commented on the presentation of the Water Resilience Strategy: 

"With the Water Resilience Strategy, the European Commission is recognising water for what it is: a key resource for climate protection, security and competitiveness. It is about the resilience of our societies and locations in the face of growing risks from drought, heavy rainfall and flooding. The Commission is proposing concrete measures, such as the restoration of floodplains, wetlands and retention areas, which need to be supported. With new financing concepts and public-private partnerships, we in Germany and Europe need to step up the pace in order to define and implement clear goals for climate impact adaptation. The challenges have long been concrete and the answers must no longer remain abstract."

The strategy responds to a development that can no longer be ignored: climate-related natural disasters are increasing – with serious consequences for people, infrastructure and the economy. At the same time, Europe’s water reserves are under growing pressure. Droughts, heavy rainfall, floods and crop failures are no longer outliers, but part of a new normal.

This is where the Water Resilience Strategy comes in. It defines clear targets for flood prevention, drought preparedness and climate-resilient infrastructure – and calls on Member States to significantly strengthen their efforts to prevent water-related risks. For Germany, this means that prevention must become a political priority and be implemented systematically across industry sectors.

It is not enough to simply manage risks; we must also anticipate and reduce them to make Europe more resilient.

A shift towards prevention – water as a strategic resource

The new strategy adopts a comprehensive, cross-sectoral approach. It combines nature-based solutions – such as wetland restoration, rewetting of peatlands and reconnecting floodplains – with digital tools, intelligent infrastructure and targeted incentives for water-sensitive economic practices. Urban areas are to become “sponge cities” – capable of absorbing and storing excess water during heavy rainfall, while also improving microclimates and quality of life.

In agriculture, the Commission is focusing on support and incentives rather than regulation. Through the Common Agricultural Policy (CAP), farmers are encouraged to voluntarily adopt water-efficient practices such as drip irrigation or agroforestry. The goal is to improve water efficiency, restore soil's water retention capacity and enhance the resilience of agricultural landscapes.

The strategy also targets industry. Circular water use, wastewater recycling and smart control systems should help reduce dependency on freshwater resources and prevent supply disruptions – especially in water-intensive sectors such as chemicals, energy and food production.

Risk prevention before crisis response

The Commission makes it clear: many of today’s losses from extreme weather and natural hazards could be avoided – if planning were more systematic and forward-looking. That’s why the strategy prioritises early-stage preventive action – embedded in spatial planning, permitting and investment decisions.

The EU calls on Member States to prioritise risk prevention in binding national strategies. By 2027, national implementation plans for the Water Framework Directive and the Floods Directive must be completed. By 2030, large-scale ecosystem restoration and water retention measures should be underway – and water-related risks fully integrated into infrastructure and urban planning frameworks.

Germany is no exception. Despite strong capabilities in environmental technology and model cities like Hamburg, Leipzig and Berlin, significant gaps remain in the implementation of EU requirements. The 2021 Ahr Valley flood disaster painfully underscored what can happen when prevention comes too late. The Water Resilience Strategy sends a clear signal: proactive adaptation is no longer optional – it is essential for public safety and long-term stability.

The insurance industry’s role in resilience

The insurance industry has long-standing experience in managing climate-related natural hazards – from flash floods to drought. It understands risk patterns, holds valuable claims data, and can provide robust models for forecasting local and regional climate risks.

Beyond risk transfer, insurers actively promote prevention: through information campaigns, advice on structural protection measures and support for municipal risk planning. Innovative insurance solutions are increasingly used to create financial incentives for adaptation and reward risk-reducing behaviour.

The German insurance industry has long advocated a robust policy framework for climate risk prevention, with clear responsibilities, cross-sectoral coordination, and sufficient funding. Nature-based, technical and economic instruments need to be integrated into a coherent framework – so that prevention becomes measurable, actionable and effective.

What needs to happen now

With the Water Resilience Strategy, the European Commission has provided a clear framework for action. Germany and other Member States now need to fill that framework with concrete measures – including the update of national water strategies, and the mainstreaming of climate adaptation into planning law, investment programmes and infrastructure development. Greater coordination of existing flood protection measures, for which in Germany the federal states are responsible, is also necessary. Water does not stop at borders.

Most importantly, speed is of the essence. The longer action is delayed, the greater the losses from natural hazards will be. A structured, forward-looking prevention policy – as outlined by the EU – can protect lives, reduce costs and build long-term resilience. The insurance industry is ready to support this effort with expertise and experience.