Central Europe floods could drive insured losses up to $3.3bn, says Gallagher Re
Insured losses from the recent severe floods that struck central Europe, which mainly occurred from September 12-15 are likely to range between EUR 2.0 – 3.0 billion (USD 2.2 – 3.3 billion), according to estimates from reinsurance broker Gallagher Re.
A slow-moving low-pressure system caused continuous rainfall across central Europe, leading to severe and costly flooding, particularly impacting the Czech Republic, Poland, Slovakia, Austria, Hungary, Slovenia, and Romania.
It’s been reported that the floods have resulted in at least 24 fatalities: 10 in Poland, 7 in Romania, 4 in the Czech Republic, and 3 in Austria.
Gallagher Re also noted that hundreds of people have been rescued from rising waters, and thousands across Europe have also been evacuated.
Exceptional damage was incurred to residential and commercial properties, along with vehicles, infrastructure, and agribusiness operations. In many regions, this became the worst flooding to occur in decades, if not longer.
Parts of Austria and the Czech Republic saw total rainfall reach and exceed 300 millmetres (11.8 inches), while a number of stations in southwestern Poland recorded more than 150 millimetres (6 inches) in a 24-hour period.
Gallagher Re noted that the event was well predicted by weather models, and public warnings were issued days in advance of the heaviest rains.
The broker also added that enhanced warnings, along with recent increased investment in flood defences have played a key role in mitigating losses.
Gallagher Re also stated that re/insurers are closely monitoring the flood situation in Europe, given the recent pattern of significant weather events in the region.
“The scale of the ongoing Central Europe floods is quite extensive and there remains a growing expectation that this could rank among the costliest weather / climate events on record in this part of the European continent. While losses will take some time to fully develop, economic damage will be calculated in the billions (USD),” Gallagher Re said.
“It remains too preliminary to provide a precise insured loss estimate although losses are likely to range between EUR2.0 to 3.0 billion (USD2.2 to 3.3 billion),” added the reinsurance broker.
It’s important to note that re/insurers’ attention has been increasingly focused on the European flood peril in recent years, following a number of impactful and costly events.
Earlier this year, Southern Germany witnessed signficant flooding which genereated at least USD 2 billion in insured losses following heavy rains.
