Slovenian insurers paid almost EUR 850 million for weather damage throughout the last 15 years

17 August 2023 — Daniela GHETU
Between 2006 and 2020, compensations paid by Slovenian insurers for damagse caused by natural disasters amounted to EUR 850 million, the Slovenian Agency for Insurance Supervision said. Damages to real estate account for the largest share of the compensations paid, followed by damage to cars.
Looking back, the highest compensations were paid in 2008. In the whole year, insurance companies paid out almost EUR 140 million euros for damages caused by natural disasters. Rainfall with hail and strong gusts of wind on 15 and 16 August 2008 resulted in the highest compensation paid for an individual event, which amounted to almost EUR 85 million.

The second largest damage event, which also occurred in 2008, was a hailstorm with compensations paid in the amount of EUR 45 million. The third damage event in terms of the amount of compensation paid is the hailstorm in 2014, with claims paid in the amount of almost EUR 28 million. 

While it is still early to assess the insurd losses caused by the recent floods, given the huge dimensions of the event, one may expect they will exceed by far the amounts seen in the previous years. So far, Slovenia's government raised its estimates of the damage caused by the floods at several billions of euro from the innitial EUR 500 million assessment. Besides damages to real estate, there also affected numerous cars and large areas of agricultural crops.

This event will definitely have a negative impact on the operations of insurance companies this year, but the Agency for Insurance Supervision does not expect that their capital strength will deteriorate as a result, as Slovenian insurance companies are highly capitalized and have strong reinsurance programs.