Verisk (AIR) estimates Dudley/Eunice insured losses at EUR 3bn to 5bn

Verisk Extreme Event Solutions, the new brand name for catastrophe risk modeller AIR Worldwide, has estimated the insurance and reinsurance market loss from the two most severe recent European windstorms, Dudley (Ylenia) and Eunice (Zeynep), will reach as high as EUR 5 billion.

As we reported yesterday, Fitch Ratings estimated that the insured losses across three storms, Dudley, Eunice and Franklin (Ylenia, Zeynep and Antonia) would drive losses of up to EUR 5 billion for German, UK and Dutch insurers alone, with reinsurance expected to take the largest share.

Verisk’s estimate is therefore aligned, but at the upper-end could suggest the total impacts from recent storms to the insurance and reinsurance industry may reach above EUR 5 billion, given the additional wind damage seen and flooding that has continued beyond storm Franklin in the UK.

Verisk’s estimates include losses caused by wind damage from Dudley/Ylenia and Eunice/Zeynep to residential, commercial, industrial, and agricultural properties, and automobiles, the company said. They also include losses to structures and contents, as well as business interruption and additional living expenses for the UK.

The industry loss estimates include an adjustment to account for increased material and other repair costs in the current construction market.

Verisk said that current market conditions in the UK and continental Europe means losses could be an estimated 10–15% or more above the modeled results, accounting for the increased cost of construction during 2021.

“After Storm Dudley/Ylenia menaced parts of the UK and Northern Europe February 16 and 17 with high winds, an even stronger Storm Eunice/Zeynep swept in to cause damage in the region February 18 to 20,” Dr. Marc Marcella, principal scientist at Verisk explained.

Dr. Marcella added, “In the wake of Dudley/Ylenia, Storm Eunice/Zeynep brought more high winds, leading to widespread reports of wind damage to homes and businesses in the UK and continental Europe, including roofs torn off. In addition, the roofs of an arena in London and another in the Hague were damaged severely. Extreme wind speeds in London are relatively rare. Transportation of all types, including hundreds of domestic and international flights and rail, and road travel, was disrupted in the UK and continental Europe.”

The company said that storm surge damage was not see to be significant, despite high tides being recorded.

Also read:

Euro storm losses may hit EUR 5bn. Reinsurance to take majority: Fitch.

European windstorm insured losses head towards EUR 3bn.

No cat bond losses from Euro storms, but aggregate implications: Plenum.

Billion plus storm losses expected from Dudley (Ylenia) & Eunice (Zeynep).