Disaster information aggregator PERILS has issued its fourth and remaining trade loss estimate for the floods that impacted southern Germany between Could 31 and June 6, 2024, placing the insured market loss at €1.564 billion.
This remaining determine compares to earlier estimates of €1.568 billion, which was issued six weeks after the occasion, €1.590 billion (three months after), and €1.582 billion (six months after), displaying solely minor changes over time.
Readers will recall that Verisk’s Excessive Occasion Options had beforehand estimated that the flooding in southern Germany would drive insurance coverage trade losses in a variety from US $2.6 billion to $3.9 billion.
Whereas, Moody’s (RMS) had put an upper-limit to its insurance coverage market loss estimate at US $3.2 billion.
In response to PERILS, 63% of the losses from the occasion stemmed from private strains property, whereas 37% have been from business strains.
The overwhelming majority of the insured losses occurred within the states of Baden-Württemberg and Bavaria, which collectively accounted for greater than 96% of the overall trade loss.
The floods have been triggered by sustained heavy rainfall introduced by a moisture-laden low-pressure system from the Mediterranean. The area between Stuttgart and Munich noticed two-day rainfall totals exceeding the 1-in-100-year return interval, falling on already saturated floor after the third-wettest Could in Germany since information started in 1881.
The ensuing floods led to 1000’s of evacuations, in depth property harm, and the tragic lack of six lives.
PERILS famous that from an insurance coverage perspective, the occasion was nicely managed by the German insurance coverage trade, which doubtless benefited from insights from main latest flood occasions such because the Ahrtal (Bernd) Floods of July 2021.
“The occasion however triggered extra discussions on necessary flood insurance coverage for houseowners with the not too long ago elected federal authorities showing dedicated to introducing a scheme for complete atmospherical perils insurance coverage,” PERILS mentioned.
Luzi Hitz, Product Supervisor at PERILS, commented: “With largescale occasions in 2002, 2013, 2021, and 2024, Germany has skilled 4 catastrophic floods within the final 24 years.
“Furthermore, because the warming local weather will increase the capability of the environment to hold water, excessive rainfall episodes corresponding to through the occasion in southern Germany final yr might change into extra frequent. It’s subsequently not shocking that necessary flood insurance coverage, which is in place in France or Switzerland, is being critically thought-about in Germany,” Hitz added.
