Zurich-based catastrophe insurance data provider PERILS AG has disclosed its third industry loss estimate for the floods in the Emilia-Romagna region of Italy during May 2023, upping the figure to €509 million.
This compares to the previous loss estimates of €377 million and €488 million issued by PERILS six weeks and three months after the event end date, respectively. PERILS explained that its loss estimates for Italy cover the property line of business, and are based on loss data collected from affected insurance companies which are subsequently grossed up to 100% market level.
Outlining the particulars of the event, the catastrophe insurance data provider said that exceptionally heavy and persistent rainfall affected northern and central Italy during the period of 2 to 22 May 2023, resulting in Italy’s wettest May since 1951.
Two peak phases in particular, which occurred on 2 to 4 May and 16 to 18 May, “overwhelmed the capacity of river and drainage systems and led to major flooding across the Emilia-Romagna region and parts of the neighbouring Marche and Tuscany regions,” PERILS observed.
17 people died, and an estimated 100,000 privately owned properties were affected by flood water. The municipalities of Ravenna, Faenza, Forli, and Cesena were the most affected areas.
According to PERILS, the economic cost of the event is officially estimated at approximately €9 billion, of which around 50% is attributed to public infrastructure losses.
The remaining €4.5 billion relates to privately owned residential, commercial, and agricultural property, of which only a small portion – currently estimated by PERILS at €509 million – is covered by insurance.
The firm said this is because flood insurance is optional in Italy and is often not bought by households and small commercial enterprises.
