German insurance association, the GDV, has raised its estimate of insurance market losses for damage from the recent flooding event to between EUR 4.5 billion and EUR 5.5 billion.Flooding in Germany, photo from Christoph Reichwein – AFP Last week, .Now, the insurance association has added damages suffered in other affected federal German states, including Bavaria and Saxony to the tally.As a result, the top-end of the industry loss estimate for flood damages in Germany has been raised to EUR 5.5 billion (around US $6.5 billion).

“We are now assuming insured damage between 4.5 billion and 5.5 billion euros,” explained the general manager of the German Insurance Association (GDV), Jörg Asmussen.The GDV said that it has now recorded a large part of the damage that was caused by the low pressure area “Bernd” from 13th to 18th July 2021 inclusive.Bavaria and Saxony are estimated to account for five to ten percent of the total, while roughly two thirds are in Rhineland-Palatinate and one third in North Rhine-Westphalia.

“According to the updated damage estimate, around 40,000 vehicles were damaged or destroyed by the floods,” Asmussen continued.“The insured damage for the motor vehicle insurer is around 200 million euros and for the transport insurer around 100 million euros.” “Overall, this year with storms, floods, heavy rain and hail should be the most damaging year since 2002,” Asmussen further said.2002 saw insured storm damage reach EUR 10.9 billion euros in total across the year.

In 2021, heavy rain and hail has already caused an estimated insured loss of EUR 1.7 billion in June.Asmussen said the claims figures would be updated on an ongoing basis, but noted that, “It may take weeks for more detailed data to be available.Record of damage and quick first payments have priority over detailed damage statistics.” , which now seems likely within Germany alone, given the penetration rate of flood insurance coverage is typically below 50%.

Insurance and reinsurance markets are now anticipating the costly storms across Europe will drive a total insured loss of well above the top-end of the Germany only estimate, given damages were also seen across countries including Belgium, Luxembourg, France, Switzerland and other parts of central Europe over the same period from low pressure Bernd.Allianz Deutschland said today that it is expecting EUR 500 million of flood losses.The insurer said that it has received 13,000 claims related to storm “Bernd”, of which 10,000 are for damage to residential property and contents, with another 3,000 for motor vehicle claims.

“But we estimate that this figure will rise significantly in the coming days,” Allianz Deutschland Damage Director Jochen Haug explained The insurer, which said part of its exposure would be reinsured, foresees more than 30,000 property damage claims and more than 5,000 vehicle damage claims in total.– .– .

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