According to re/insurance broker Gallagher Re’s estimate, insured losses are likely to range between EUR 2.0 – 3.0 billion (USD 2.2 – 3.3 billion)
The latest flooding in central Europe could cause economic losses ranging from several hundred million euros to billions, early estimates published, as the region braced for more damage.
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.
Credit rating agency Morningstar DBRS estimates losses will range from several hundred million euros to more than one billion euros ($1.1 billion), Mario De Cicco, vice president of global insurance and pension ratings at Morningstar DBRS, told Reuters in emailed comments.
According to re/insurance broker Gallagher Re’s estimate, insured losses are likely to range between EUR 2.0 – 3.0 billion (USD 2.2 – 3.3 billion).
Insured losses are expected to be higher in the Czech Republic, where insurance is more prevalent, than in Poland, De Cicco said.
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.
“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.
The two countries are some of the hardest hit by flooding, the worst in the region for at least two decades. Austria and Romania have also suffered, and at least 15 people have died.
Besides local insurance firms, big Austrian insurers – especially those active in the Czech Republic and Poland – are expected to be those most affected, De Cicco said.
Severe weather events have caused some of the biggest losses for insurers in recent years, prompting appeals from the industry to do more to address climate change.
With inputs from agencies