Extreme weather events will become ever more frequent, with all the damages and costs that entails.

How can we deal with the financial ramifications, Charles Margue, MP for déi gréng, wanted to know from Finance Minister Pierre Gramegna on Tuesday.

A voluntary supplementary insurance against floods was introduced in 2017, which just over 50 percent of households have taken, says Gramegna, adding that everyone should consider getting it.

"For 20-30 Euros a yer you can cover 100,000 Euros. However, these premiums were set too low as insurance companies thought these events would maybe occur once every ten years. Now we discover they happen almost every year."

Insurance companies have already announced they will increase the premiums.

Read also: Flood damages exceed €120 million

In terms of mandatory insurance policies, the finance minister is cautious. The ministry is currently looking into models from other countries to see how they could get every household to procure an insurance for cases of weather catastrophes.

"There are some interesting options: fire insurance and mortgages. If you take out a mortgage to buy a house, the extreme weather insurance could be included."

Insurance companies estimate that the damages incurred from the floods last summer amount to around 120-130 million Euros. Much of it has already been covered, says the Minister. In case of high damages, there are often advance payments.

No one is being left out in the cold, Gramegna insisted. The government released around 150 million Euro to assist private citizens and businesses, and to repair damages caused to national infrastructure.