The German Insurance Association (GDV) has warned that damage caused by natural catastrophe events in the country in 2021 has cost insurers and reinsurers a record €12.5 billion.
The GDV estimates that around €9 billion of the €12.5 billion total is attributable to damage to residential buildings, household effects and businesses as a result of flooding and heavy rain.
Roughly €2 billion of the insured loss total is attributable to storm and hail damage. The remaining €1.5 billion, according to the GDV, relates to natural hazard damage to motor vehicles.
Jörg Asmussen, General Manager of the GDV, commented: “With insured damage to houses, household items, businesses and motor vehicles of around 12.5 billion euros, 2021 will be the most expensive year of natural hazards since statistics began in the early 1970s.”
Overall, the July flooding in Germany is expected to result in insured losses of €8.2 billion. Of this, roughly €7.7 billion is attributable to residential buildings, household effects and businesses, and around €450 million to damage to motor vehicles.
“We have already paid out over three billion euros to our customers within a short period of time,” notes Asmussen.
In June, a series of storms caused insured damages of €1.7 billion. The GDV says that this was mainly motor vehicles that were impacted by severe hail damage with a loss of roughly €700 million.
“For the motor insurers, there was also an above-average amount of damage in 2021,” says Asmussen.
The GDV notes that the €12.5 billion total is higher than the overall insured loss seen in the country in 2002, a year which saw severe flooding in August and a number of damaging storms.