PERILS places final industry loss from southern Germany floods at €1.564bn

Zurich-based catastrophe insurance data provider PERILS has released its fourth and final industry loss estimate for the floods that struck southern Germany between 31 May and 6 June 2024, placing the insured market loss at €1.564 billion.

The final figure is reportedly composed of personal lines property losses, which represent 63% of the total industry loss, and commercial lines property losses, which represent 37%. The €1.564 billion figure compares to the previous loss estimates of €1.568 billion, €1.59 billion and €1.582 billion issued by PERILS six weeks, three months and six months after the event end date, respectively.

The vast majority of the losses are said to have occurred in the southern German states of Baden-Wuerttemberg and Bavaria, which make up more than 96% of the total industry loss.

Providing some background for the event, PERILS noted that the heavy and persistent rain was brought by a moisture-laden low from the Mediterranean Sea.

PERILS continued, “May 2024 was Germany’s third wettest May since records began in 1881, meaning that rains in late May / early June fell on saturated ground and drained into already swollen waterways.

“The result was widespread flooding, triggering thousands of evacuations and causing severe damage to property, infrastructure and farmland. In the southern states of Bavaria and Baden-Wuerttemberg, six people tragically lost their lives.”

As per the catastrophe insurance data provider, the event was well managed by the German insurance industry, which likely benefited from insights from major recent flood events such as the Ahrtal (Bernd) Floods of July 2021.

“The event nevertheless triggered more discussions on mandatory flood insurance for houseowners, with the recently elected federal government appearing committed to introducing a scheme for comprehensive atmospherical perils insurance,” PERILS said.

Luzi Hitz, Product Manager at PERILS, commented, “With largescale events in 2002, 2013, 2021, and 2024, Germany has experienced four catastrophic floods in the last 24 years.

“Moreover, as the warming climate increases the capacity of the atmosphere to carry water, extreme rainfall episodes such as during the event in southern Germany last year could become more frequent.

“It is therefore not surprising that mandatory flood insurance, which is in place in France or Switzerland, is being seriously considered in Germany.”

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