French reinsurer CCR has estimated the cost of flooding in Hauts-de-France at €550 million, at least half of which will be covered by the reinsurer’s natural catastrophe scheme.
The region has experienced unconventional flooding due to a succession of rainy episodes associated with storm Ciarán, which also caused flooding in Pas-de-Calais and other parts of the North of France.
This was followed by sustained showers on already saturated soils linked to storm Domingos and depression Elisa.
A total of 204 municipalities in these regions have already been recognized as being in a state of natural disaster.
The costs of these floods affect the entire insurance market, with the CCR planning to cover 50% of the estimated figure, around €275 million, under public reinsurance.
The reinsurer offers insurance companies operating in France guaranteed coverage against natural disasters and other risks of an exceptional nature.
This estimated cost takes into account data available to date, which may be gradually reassessed in the event of continued flooding in the region or the occurrence of a new event, the CCR noted.
Antoine Quantin, Director of Reinsurance and Public Funds at CCR, commented: “The modelling carried out by our teams allows an initial assessment of the damage which will be covered under the natural catastrophe compensation scheme. This scheme, which has existed for 40 years in France, is all the more central today with the succession of complex climatic phenomena facing our fellow citizens.
“We are involved with the State and insurers to guarantee a sustainable insurance system in this context. It is important to learn all the lessons in terms of damage to identify as closely as possible how the French territories can best prepare and what are the most effective prevention measures.”
