$6B-$7.7B Insured Losses From Europe Flooding

August 24, 2021 | 0 Comments

RMS estimates that insured losses from the Western and Central Europe flooding that occurred in July 2021 will be between $6 billion and $7.7 billion.

With Bermuda being home to many of the world’s top re/insurers, it is expected some of the Bermuda companies will be paying claims.

The company said, “RMS, the world’s leading catastrophe risk solutions company, estimates that insured losses from the Western and Central Europe flooding that occurred between July 12 and 18, 2021 will likely range between €5 billion and €6.5 billion [US$6 billion and US$7.7 billion].

“RMS reconstructed a flood hazard footprint that covers the worst affected areas, including western and southern Germany, eastern Belgium, eastern France and Luxembourg.

“RMS estimates that the total insured losses for these regions will likely be in the range of €5 billion to €6.5 billion. Germany is the dominant contributor of loss to the event with about 70 percent of the total loss, followed by Belgium with about 25 percent of the loss.

“The loss estimate includes insured property and business interruption loss to residential, commercial, industrial, automobile, and infrastructure lines and accounts for the potential of post-event loss amplification and extended business interruption. It excludes losses observed in the Netherlands, which sits outside of the model domain, and losses in Switzerland, Bavaria and Saxony in Germany, and Austria, which were caused outside the time window of the heaviest rainfall.

Daniel Bernet, product manager, Europe Flood Models, RMS: “In terms of loss, this event is expected to be comparable to the costliest European flood events in recent history, the Central and Eastern Europe floods of 2002 and 2013.

However, unlike the 2002 and 2013 events during which overtopping and breaching of major rivers contributed substantially to overall damages, the 2021 event occurred in a different region and was characterized with much steeper and faster flood waves with higher flow velocities in smaller rivers and tributaries that caused substantial structural damage, and regretfully, an unusually high number of fatalities.”

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