Flood and hail: 2021 is the most expensive year for German insurers so far. But extreme weather events in the first half of the year are already causing above-average losses. Heavy winter storms in particular cause enormous damage.
According to their association, natural catastrophes caused insurers in Germany losses of around three billion euros in the first half of the year. This means that 2022 has been an above-average damage year so far, said the general manager of the German Insurance Association (GDV), Jörg Asmussen in Berlin. The winter storms “Ylenia”, “Zeynep” and “Antonia” in February caused almost half of the damage at 1.4 billion euros. In addition, the tornado “Emmelinde” came in May with severe destruction in Paderborn, Höxter and Lippstadt.
On a long-term average, natural hazards in Germany cause insured losses of EUR 3.8 billion per year. Comparative figures for the first half of the year are not available to the GDV. For storm and hail damage alone, the long-term average for the first six months is around one billion euros.
In contrast to the previous year, according to the information, there was hardly any major damage from flooding or heavy rain. In July 2021, the storm “Bernd” with flash floods in Rhineland-Palatinate and North Rhine-Westphalia caused insured damage of around 8.5 billion euros, according to GDV. According to the information, this was the most damaging natural catastrophe in Germany to date. More than 180 people lost their lives in this country.
From a global perspective, too, extreme weather events in the first half of 2022 are disproportionately expensive for insurance companies. Floods and storms have caused $35 billion in damage, according to Swiss reinsurer Swiss Re. A series of winter storms in Europe, unprecedented flooding in Australia and South Africa, and a high number of thunderstorms in the US and Europe led to the damage. The floods in Australia were therefore the world’s most expensive natural catastrophe for the insurance industry in the first half of the year. Compared to the compensation payments by insurers, overall economic damage in the first half of the year was rather small at 65 billion dollars.
“The storm events of the past six months make it clear once again that natural disasters, especially secondary hazards, are increasing in frequency and severity in all regions,” explained Swiss Re manager Martin Bertogg. The effects of climate change were reflected in “increasingly extreme weather events”.
This confirms the trend that the company has observed over the past five years: So-called secondary hazards such as floods or forest fires are driving the damage in all parts of the world. “Unlike hurricanes or earthquakes, these hazards are pervasive and are exacerbated by rapid urbanization in high-risk areas.”
“Climate change is one of the greatest risks for our society and the global economy,” said chief economist Jérôme Jean Haegeli. Since 75 percent of all natural catastrophes are still not insured, Swiss Re sees “large gaps in protection” worldwide – which are being exacerbated by today’s cost of living crisis.
