Allianz Sees Damages Worth Tens of Millions for German Vineyards

Insurer Allianz SE expects to pay German winemakers tens of millions of euros in insurance claims this year after many vineyards lost their entire harvest to heavy frosts.

While mild temperatures earlier in the year helped shoots to develop sooner, freezing temperatures in late April caused many of them to die. Allianz Agrar said in a press release Monday that it was the most severe frost event in over 40 years, and may result in claim payments “in the double-digit million range” for customers. It’s still in the process of assessing damages.

Germany, which is known abroad for its Riesling variety, is the fourth largest wine producer in the European Union.

Vineyards in the country’s southwest — in Baden-Wurttemberg and Franconia — have been hit particularly hard, Allianz said. But wine regions in other parts of Germany, auch as Saxony and Saale-Unstrut, are also struggling with the consequences of extreme weather.

“We have not had such a severe late frost in our region since weather records began,” said Luise Boehme, a winegrower from the Saale-Unstrut region, who doesn’t have frost protection insurance. She and her parents lost approximately 80% of this year’s wine harvest.

While Boehme said they can buffer the losses, other producers might not survive this season.

Photograph: Frost-damaged vines in Radebeul, Germany in April 2024. Photo credit: Daniel Schäfer/AFP/Getty Images