Estimating the Economic Impact of Recent Flooding in Europe
Understanding the Insured Losses from Recent Flooding
BOSTON – The Extreme Event Solutions group at Verisk (NASDAQ: VRSK) has made significant assessments regarding the flooding that took place in various parts of Europe. Reports indicate that the insured losses from this weather event, particularly in Czechia, Poland, and Austria, are estimated to range between EUR 2 billion to EUR 3 billion (approximately USD 2.2 billion to USD 3.4 billion).
The Impact of Severe Weather Systems
This flooding event occurred in September 2024, similar in nature to the floods experienced earlier in June. Both weather events were initiated by a Vb weather system, known to cause persistent rainfall and severe flooding. This unusual meteorological pattern has led to widespread devastation across multiple European nations, with Poland and Czechia being the most significantly affected regions.
Extent of Damage in Affected Areas
According to reports from various governmental bodies, September saw extensive damage across many communities. The Polish Prime Minister's office indicated that approximately 11,500 residential structures faced damage or flooding. This incident also impacted over 6,000 agricultural and business properties, including more than 700 public buildings such as schools and community centers.
Insurance Claims and Loss Reports
The Czech Insurance Association revealed a staggering number of claims, with over 60,000 filed thus far, translating to insured losses of roughly 19.3 billion CZK (around EUR 770 million or USD 850 million). A notable aspect of these claims is that a substantial portion pertains to business insurance, illustrating the economic ramifications for businesses in the region.
Geographical Spread and Additional Heralded Effects
The flooding damage wasn't confined only to Czechia and Poland; it also spread impacts to adjacent nations. Local authorities reported that flood conditions resembled those experienced once in a millennium in certain areas, emphasizing the severity of this natural disaster. Regions in Germany, Hungary, Romania, Slovakia, and Italy also faced varying degrees of flooding during this period.
Insurance Coverage Variance by Region
The insured losses will differ according to the country, largely due to insurance coverage variations. In both Austria and Czechia, there is a higher incidence of homeowners opting for flood insurance. However, policy limitations in Austria can moderately affect the reported insured losses. Conversely, in Poland, while commercial properties are well-covered, most residential and automotive insurance policies lack flood coverage, creating a gap in financial protection.
A Comprehensive Look at Loss Estimations
Verisk's loss assessments encompass physical damage to diverse property types including residential, commercial, industrial, automotive, and agricultural assets. These estimates also cover additional living expenses (ALE) linked to residential claims and business interruption (BI) losses for commercial entities.
Excluded Loss Considerations
It is important to note that Verisk's estimates do not include potential losses occurring in Germany or other regions not explicitly mentioned, uninsured properties, infrastructure damages, and losses stemming from extra-contractual liabilities among others. The assessment is focused strictly on directly modeled losses associated with this weather event.
About Verisk
Verisk (NASDAQ: VRSK) stands at the forefront of global data analytics, serving as a vital partner for the insurance industry worldwide. The company works diligently to endorse improved operational efficiencies, enhance underwriting processes, and facilitate informed decision-making concerning global hazards. Verisk’s dedication to resilience is reflected through advanced software, analytical insights, and extensive industry expertise aimed at ensuring safety for individuals and communities alike.
Frequently Asked Questions
What were the estimated insured losses from the flooding?
The insured losses from the flooding in Central Europe are estimated to range from EUR 2 billion to EUR 3 billion.
Which countries were most affected by this flooding event?
The most impacted countries included Czechia, Poland, and Austria, with significant damages also reported in neighboring countries.
What factors caused the flooding in September 2024?
The flooding was primarily caused by a Vb weather system, which resulted in prolonged periods of rainfall affecting numerous regions.
How many insurance claims have been filed in the Czech Republic?
In the Czech Republic, more than 60,000 claims had been reported, amounting to insured losses of approximately 19.3 billion CZK.
Does Verisk include losses from other types of incidents in their assessments?
No, Verisk's loss estimates specifically focus on insured physical damage related to this flooding event and do not include losses from other incidents or uninsured properties.
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