Insurance coverage business losses from the current extreme flooding that struck central Europe in September are estimated to vary between EUR 2 billion (~US $2.2 billion) to EUR 3 billion (~US $3.4 billion), in accordance with Verisk Excessive Occasion Options.
The corporate stated that this extreme flood occasion, like an identical June flood occasion in Europe that primarily impacted Germany, was attributable to what is named a Vb (“five-b”) climate system, which it notes is a comparatively uncommon setup that may result in important prolonged intervals of rainfall and flooding.
The loss impacts have been largely attributable to flooding in Czechia, Poland and Austria, Verisk stated, however the worst was seen alongside the border of Poland and Czechia.
As well as, elements of Germany, Hungary, Romania, Slovakia and Italy additionally skilled delicate to reasonable flooding impacts from the identical climate occasion.
Verisk’s preliminary insurance coverage business loss estimate compares intently to a €2 billion to €3 billion range indicated by reinsurance broker Gallagher Re.
Whereas S&P International Scores had stated that it anticipates the insurance coverage market loss from these floods to be round €2.2 billion throughout Czechia, Poland, Austria, and Romania.
S&P had additionally stated that it it expects a significant share of the insurance claims from the European flooding will be covered by reinsurance capital.
Additionally for comparability, insurance coverage and reinsurance dealer Aon’s Impact Forecasting unit gave an industry loss estimate for the Central Europe Flooding in September 2024, caused by Storm Boris, of €1.65 billion.
Whereas our sister publication Reinsurance News had also reported that with Generali’s European flood per event reinsurance coverage kicking in after a €300 million attachment, the insurer is said likely to make a reinsurance recovery on Storm Boris by analysts at Goldman Sachs.
Verisk additionally stated that the proportion of the financial affect of this occasion paid by the insurance coverage business is anticipated to differ by nation, with flood insurance coverage uptake comparatively excessive in Austria and Czechia, though decrease limits on flood, particularly in Austria, might offset this considerably within the eventual insured loss tally. On the identical time, Poland sometimes sees a lot of the industrial threat lined, however solely a small fraction of houses and autos carry flood protection, Verisk defined.
Verisk stated that its estimate of insurance coverage market losses from the Central European flooding embrace insured bodily harm to property (residential, industrial, industrial, auto, agriculture), each buildings and their contents, from each on- and off-floodplain flooding, in addition to extra residing bills (ALE) for residential claims and enterprise interruption (BI) for industrial claims.
They don’t embrace losses in Germany or different nations not listed within the preliminary group, or non-modelled losses, losses to infrastructure, losses from extra-contractual obligations, uninsured losses, results of demand surge, or losses from hazardous waste cleanup, vandalism, or civil commotion, whether or not straight or not directly attributable to the occasion.
