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Verisk Estimates Industry Insured Losses from Flooding in Central Europe to Range from EUR 2 Billion (~USD 2.2 Billion) to EUR 3 Billion (~USD 3.4 Billion)

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Verisk's Extreme Event Solutions group estimates that insured industry losses from the September 2024 flooding in Czechia, Poland, and Austria will range from EUR 2 billion to EUR 3 billion. The event, caused by a Vb weather system, resulted in extensive property damage across several European nations. In Poland, over 11,500 residential buildings and 6,000 agricultural and commercial buildings were affected. The Czech Insurance Association reported over 60,000 claims totaling approximately EUR 770 million in insured losses. Austria's Lower Austria region experienced catastrophic impacts, with floodwaters reaching levels seen only once in 1,000 years on average.

The estimates include insured physical damage to property, additional living expenses, and business interruption claims. Insurance coverage varies by country, with Austria and Czechia having higher flood insurance take-up rates compared to Poland.

Il gruppo Extreme Event Solutions di Verisk stima che le perdite assicurate del settore dovute alle inondazioni di settembre 2024 in Cechia, Polonia e Austria varieranno da EUR 2 miliardi a EUR 3 miliardi. L'evento, causato da un sistema meteorologico Vb, ha comportato danni ingenti alla proprietà in diverse nazioni europee. In Polonia, oltre 11.500 edifici residenziali e 6.000 edifici agricoli e commerciali sono stati colpiti. L'Associazione delle Assicurazioni Ceca ha riportato oltre 60.000 richieste di indennizzo per un totale di circa EUR 770 milioni in perdite assicurate. La regione dell'Austria Inferiore in Austria ha subito impatti catastrofici, con le acque alluvionali che hanno raggiunto livelli che si registrano mediamente solo una volta ogni 1.000 anni.

Le stime includono danni fisici assicurati alla proprietà, spese vive aggiuntive e richieste di interruzione dell'attività. La copertura assicurativa varia da paese a paese, con l'Austria e la Cechia che presentano tassi di adesione all'assicurazione contro le inondazioni più elevati rispetto alla Polonia.

El grupo de Soluciones de Eventos Extremos de Verisk estima que las pérdidas aseguradas de la industria debido a las inundaciones de septiembre de 2024 en Chequia, Polonia y Austria oscilarán entre EUR 2 mil millones y EUR 3 mil millones. El evento, causado por un sistema meteorológico Vb, resultó en daños extensos a la propiedad en varias naciones europeas. En Polonia, más de 11.500 edificios residenciales y 6.000 edificios agrícolas y comerciales se vieron afectados. La Asociación de Seguros Checa informó de más de 60.000 reclamaciones que totalizan aproximadamente EUR 770 millones en pérdidas aseguradas. La región de Baja Austria en Austria experimentó impactos catastróficos, con las aguas de la inundación alcanzando niveles vistos solo una vez cada 1.000 años en promedio.

Las estimaciones incluyen daños físicos asegurados a la propiedad, gastos de vida adicionales y reclamaciones por interrupción del negocio. La cobertura del seguro varía según el país, siendo Austria y Chequia los que tienen tasas de captación de seguros contra inundaciones más altas en comparación con Polonia.

Verisk의 극한 사건 솔루션 그룹은 체코, 폴란드, 오스트리아에서 발생한 2024년 9월 홍수로 인한 보험업계의 손실이 20억 유로에서 30억 유로에 이를 것으로 예상하고 있습니다. Vb 기상 시스템에 의해 발생한 이 사건은 여러 유럽 국가에서 광범위한 재산 피해를 초래했습니다. 폴란드에서는 11,500채 이상의 주택6,000채 이상의 농업 및 상업 건물이 피해를 입었습니다. 체코 보험 협회는 약 7억 7천만 유로의 보험 손실을 포함한 60,000건 이상의 청구가 있었다고 보고했습니다. 오스트리아의 낮은 오스트리아 지역은 평균적으로 1,000년 동안 한 번만 발생하는 수준까지 홍수 피해를 입는 경우가 있었습니다.

이 추정치는 재산에 대한 물리적 피해, 추가 생활비 및 사업 중단 청구를 포함합니다. 보험 보장은 국가에 따라 다르며, 오스트리아와 체코가 폴란드에 비해 홍수 보험 가입률이 더 높습니다.

Le groupe Solutions pour Événements Extrêmes de Verisk estime que les pertes d'assurance de l'industrie dues aux inondations de septembre 2024 en République Tchèque, Pologne et Autriche varieront de 2 milliards d'euros à 3 milliards d'euros. L'événement, causé par un système météorologique Vb, a entraîné des dommages matériels considérables dans plusieurs nations européennes. En Pologne, plus de 11.500 bâtiments résidentiels et 6.000 bâtiments agricoles et commerciaux ont été touchés. L'Association des Assurances Tchèque a signalé plus de 60.000 demandes d'indemnisation totalisant environ 770 millions d'euros en pertes assurées. La région du Bas-Autriche en Autriche a subi des impacts catastrophiques, avec des eaux d'inondation atteignant des niveaux observés en moyenne une fois tous les 1.000 ans.

Les estimations incluent des dommages matériels assurés, des frais de subsistance supplémentaires et des réclamations pour interruption d'activité. La couverture d'assurance varie d'un pays à l'autre, l'Autriche et la République Tchèque ayant des taux de souscription à l'assurance contre les inondations plus élevés par rapport à la Pologne.

Die Extreme Event Solutions-Gruppe von Verisk schätzt, dass die versicherten Industrieverluste durch die Überschwemmungen im September 2024 in Tschechien, Polen und Österreich zwischen 2 Milliarden Euro und 3 Milliarden Euro liegen werden. Das Ereignis, das durch ein Vb-Wetter-System verursacht wurde, führte zu erheblichen Sachschäden in mehreren europäischen Ländern. In Polen waren über 11.500 Wohngebäude und 6.000 landwirtschaftliche und gewerbliche Gebäude betroffen. Der Tschechische Versicherungsverband berichtete von über 60.000 Schadensmeldungen mit einem Gesamtbetrag von etwa 770 Millionen Euro an versicherten Verlusten. Die Region Niederösterreich in Österreich erlebte katastrophale Auswirkungen, wobei die Flutwasser Werte erreichten, die im Durchschnitt nur einmal in 1.000 Jahren zu beobachten sind.

Die Schätzungen umfassen versicherte Sachschäden an Eigentum, zusätzliche Lebenshaltungskosten und Geschäftsausfallansprüche. Der Versicherungsschutz variiert von Land zu Land, wobei Österreich und Tschechien höhere Wahrscheinlichkeiten zur Aufnahme von Überschwemmungsversicherungen im Vergleich zu Polen aufweisen.

Positive
  • Verisk provides detailed estimates of insured losses, demonstrating expertise in risk assessment
  • The event highlights the importance of Verisk's services in the insurance industry
  • High insurance take-up rates in Austria and Czechia may lead to significant business for insurers
Negative
  • The flooding event could result in substantial payouts for insurance companies, potentially impacting their financial performance
  • Lower flood insurance coverage in Poland may limit the insured loss tally, affecting potential revenue for insurers and Verisk

Insights

This flood event in Central Europe represents a significant insured loss for the insurance industry, estimated between EUR 2 billion to EUR 3 billion. The scale of damage, particularly in Poland, Czechia and Austria, is extensive, affecting residential, commercial and public infrastructure.

Key points to consider:

  • The Czech Insurance Association reported over 60,000 claims, with 60% related to business insurance, indicating substantial commercial impact.
  • Varying insurance penetration rates across countries will influence the proportion of economic losses covered by insurers.
  • The event's classification as a 1,000-year flood in some areas suggests potential for record-breaking claim amounts.

For investors, this event may impact insurers and reinsurers with exposure in these markets, potentially affecting short-term profitability and leading to reassessment of risk models and pricing strategies in the region. Long-term, it could drive increased demand for flood insurance and risk mitigation solutions, benefiting companies like Verisk that provide analytics and risk assessment tools.

This flooding event, caused by a Vb ("five-b") weather system, highlights the growing importance of climate risk assessment in the insurance and property sectors. The widespread impact across multiple countries and the severity of the flooding underscore the need for sophisticated modeling and risk management tools.

Key observations:

  • The unusual weather pattern leading to extended rainfall periods may indicate changing climate dynamics.
  • The effectiveness of Vienna's flood protection infrastructure contrasts with severe impacts in surrounding areas, emphasizing the value of adaptive measures.
  • The event's classification as a 1,000-year flood in some regions suggests a potential recalibration of flood risk assessments may be necessary.

For investors, this event underscores the growing market for climate risk analytics and adaptation strategies. Companies like Verisk, which provide these services, may see increased demand. Additionally, there could be heightened interest in infrastructure and property resilience solutions, potentially creating investment opportunities in related sectors.

BOSTON, Oct. 01, 2024 (GLOBE NEWSWIRE) -- The Extreme Event Solutions group at Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, estimates that insured industry losses from the flooding in Czechia, Poland and Austria in September 2024 will range from EUR 2 billion (~USD 2.2 billion) to EUR 3 billion (~USD 3.4 billion).

Like the June flood event in Europe that primarily impacted Germany, this weather event was caused by a Vb (“five-b”) weather system, a relatively unusual setup that can lead to significant extended periods of rainfall and flooding.

This event spread across several European nations during September with some of the worst impacts occurring along the border of Poland and Czechia. The Polish Prime Minister’s office reported as of September 19 that property damage was extensive, with at least 11,500 residential buildings—both single-family homes and multi-unit structures—either flooded or damaged. Additionally, more than 6,000 agricultural and commercial buildings, along with more than 700 public-use structures, including schools, kindergartens, sports facilities, administrative buildings, bridges and roads, were damaged or submerged. 

The Czech Insurance Association reported during the week of September 22 that more than 60,000 claims had been received by Czech insurers so far, with 19.3 billion CZK in insured losses (roughly EUR 770 million or USD 850 million). The report also indicated that roughly three-fifths of those claims are related to business insurance. While Vienna was spared major impacts by retention basins designed to protect the city, the surrounding region of Lower Austria had catastrophic impacts, largely from the River Wien, a tributary of the Danube.

According to local authorities, the floodwaters in this area were said to be roughly that experienced in 1,000 years on a long-term average. Parts of Germany, Hungary, Romania, Slovakia and Italy also experienced mild to moderate flooding impacts from this event.

The proportion of the economic impact of this event paid by the insurance industry will vary by country. In Austria and Czechia, flood insurance take-up rates are relatively high, though lower limits on flood, especially in Austria, may offset this somewhat in the eventual insured loss tally. In Poland, most of the commercial risk is covered, but only a small fraction of homes and autos carry flood coverage.

Verisk’s loss estimates include insured physical damage to property (residential, commercial, industrial, auto, agriculture), both structures and their contents, from both on- and off-floodplain flooding. They also include additional living expenses (ALE) for residential claims and business interruption (BI) for commercial claims.

Verisk’s loss estimates do not include:

  • Losses in Germany or other countries not listed above
  • Losses to uninsured properties
  • Losses to infrastructure
  • Losses from extra-contractual obligations
  • Losses from hazardous waste cleanup, vandalism, or civil commotion, whether directly or indirectly caused by the event
  • Other non-modeled losses

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About Verisk 
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom.


FAQ

What is Verisk's estimated range for insured losses from the September 2024 Central European floods?

Verisk estimates that insured industry losses from the September 2024 flooding in Czechia, Poland, and Austria will range from EUR 2 billion (approximately USD 2.2 billion) to EUR 3 billion (approximately USD 3.4 billion).

How many claims have been reported by Czech insurers due to the September 2024 floods?

According to the Czech Insurance Association, more than 60,000 claims had been received by Czech insurers as of the week of September 22, 2024, with insured losses totaling approximately EUR 770 million (USD 850 million).

What types of damage are included in Verisk's (VRSK) flood loss estimates?

Verisk's loss estimates include insured physical damage to property (residential, commercial, industrial, auto, agriculture), both structures and contents, from on- and off-floodplain flooding. They also cover additional living expenses for residential claims and business interruption for commercial claims.

How severe was the flooding in Austria during the September 2024 event?

While Vienna was largely protected by retention basins, the surrounding region of Lower Austria experienced catastrophic impacts. Local authorities reported that floodwaters in this area reached levels typically seen only once in 1,000 years on a long-term average.

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