According to industry reports, Storm Ophelia, which battered parts of Ireland recently, could drive losses in the range of €500 million (US$588mn) to €800 million (US$941mn), but it remains too early to tell if the event will lead to higher insurance premiums.
The storm claimed the lives of at least three people, and brought winds of up to 100mph when it struck Ireland, leading the Irish government to call a national emergency.
According to the online publication of RTE Ireland, early estimates suggest the storm could drive losses of up to €800 million, although the true economic and insurance industry loss will take some weeks to be fully realised.
Speaking on the RTE Morning Ireland radio show, the Chief Executive Officer (CEO) of Insurance Ireland, Kevin Thompson, stressed that it would take some time for the insured loss to be understood, adding that it’s simply too early to tell whether insurance premiums will rise in response to the event.
Ireland’s only listed insurer, FBD Holdings, also said it remains too early to provide an ultimate net cost of the storm, with the company’s CEO warning that the severity meant that numerous customers would be affected.
However, reports also highlight FBD’s new reinsurance programme, which is expected to provide increased protection as the storm is anticipated to be a single event.