January windstorms expected to cost European insurers more than USD 2 billion

Windstorms Friederike, Eleanor and Carmen killed at least 20 people and caused widespread damage that may amount to over USD 2 billion in insured losses, according to the latest edition of Global Catastrophe Recap report.

The report which evaluates the impact of the natural disaster events that occurred worldwide during January 2018 was recently launched by Impact Forecasting, Aon Benfield's catastrophe model development team.

The report reveals that several Atlantic storm systems impacted Western and Central Europe during the month, the most significant of which was Windstorm Friederike, which killed at least 13 people after hurricane-force wind gusts and heavy rainfall affected Germany, the Netherlands, Belgium, France, and the United Kingdom.

The German Insurance Association (GDV) reported that Friederike was the costliest windstorm in the country since Windstorm Kyrill in 2007, with preliminary payouts listed at approximately EUR 1 billion (USD 1.24 billion).

Additional payouts exceeding EUR 100 million (USD 125 million) were reported by other regional insurance groups. Overall economic losses were even higher.

Windstorms Eleanor and Carmen also impacted Western and Central Europe, killing at least seven people and causing notable damage in the UK, Ireland, France, Germany, and Switzerland. Preliminary insured losses were listed in the hundreds of millions (EUR).

Michal LORINC, an analyst with Impact Forecasting's Catastrophe Insight team, said: "A meteorologically active January resulted in elevated windstorm losses in Europe. When looking at the combined effect of storms Friederike, Eleanor and Carmen, windstorm-related economic and insured losses in Europe are already comparable to the annual totals recorded throughout 2017. The busy stretch of storms allowed Impact Forecasting to deploy its European windstorm model and help clients better capture the expected loss impact from each event in real-time."

Further natural disaster events to have occurred elsewhere during January include:

  • A powerful storm system and significant cold impacted much of the central and eastern United States during the first week of January, killing at least 22 people. Total economic damage was estimated at USD 1.1 billion, while public and private insurers were expected to pay up to USD 750 million in claims.
  • Numerous areas of low pressure and extended periods of frigid temperatures affected Northern and Eastern China. The greatest impacts were noted to the agricultural sector in Jiangsu, Anhui, Hebei, and Hunan. The Ministry of Civil Affairs (MCA) cited winter weather damage of at least USD 1.8 billion.
  • Additional wintry weather led to casualties and damage in Japan, India, Nepal, Canada, and Lebanon.
  • Heavy rainfall swept across the state of California, prompting flash flooding, mudslides and debris flow in areas previously impacted by major December 2017 wildfires, killing at least 21 people. An official assessment from Cal Fire cited that 129 single family residences and six commercial properties were destroyed and another 307 homes and 17 commercial properties were damaged. Total economic damage was expected to reach well into the hundreds of millions (USD).
  • Persistent heavy rainfall recorded in Northern and Eastern France led to flooding along multiple rivers and streams, with some of the most notable impacts occurring in the Ile-de-France region. Preliminary damage assessments suggested that the cost of the current flooding may reach the hundreds of millions (EUR).
  • Other flood events were noted in Canada, Democratic Republic of Congo, Mozambique, and Philippines.
  • Two powerful cyclones in the South West Indian Ocean led to widespread damage. Cyclone Ava left at least 73 people left dead or missing in Madagascar, while Cyclone Berguitta caused extensive damage in Mauritius and La Reunion.
  • A magnitude-7.1 earthquake struck just offshore Peru's northern coast on January 14, killing at least two people, injuring 137 others, and damaging or destroying 2,541 homes and other structures.

To view the full Impact Forecasting January 2018 Global Catastrophe Recap report, please follow the link: http://aon.io/2FVWwb4

Related articles

Russian insurers set 4 key targets for ARIA in 2018

Representatives of insurers, members of All Russian Insurance Association, determined 4 key tasks for 2018: development of MTPL, life insurance, medical insurance, as well as improvement of legislation for home insurance against emergency cases, - said President of ARIA and RAMI, Igor YURGENS.

2018-02-15

RNRC released its 2017 portfolio of losses

Russian National Reinsurance Company published its official report on loss portfolio for 2017. The report provides distribution of losses by classes, contract types and geography of insurance events.

2018-02-15

Profit of ERGO Insurance group in Russia in 2017 increased by 39%

Net income of ERGO in Russia in 2017 increased by 39% up to RUB 314.4 million (EUR 4.56 million). GWP of ERGO group in Russia in 2017 increased by 9.5% up to RUB 9.7 billion (EUR 140.8 million). Total claims increased by 9% up to RUB 3.5 billion (EUR 50.8 million).

2018-02-15

ON THE MOVE

AIG appoined former CIA attorney as General Counsel

American International Group (AIG) announced that Caroline KRASS will join the company as Senior Vice President and General Counsel, General Insurance, and Deputy General Counsel, AIG, effective in March 2018.

13.02.2018

TOP EVENT

"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.

22.11.2017

photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

14.11.2017

photodune-3834701-laughing-girl-xs

Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

09.11.2017

photodune-3834701-laughing-girl-xs

The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

26.10.2017

Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

25.10.2017

Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.

24.10.2017

See all