The insurance and reinsurance industry is anticipating a heavy loss following a severe hail storm in the Munich region of Germany this week, which actuaries estimate could cause a damages worth hundreds of millions of euros.
Regions of Bavaria close to the main city areas of Munich were pummelled by torrential rain, strong winds of up to 118kmh and hail stones of up to tennis ball sizes, according to reports.
However, actuarial consultanty Meyerthole Siems Kohlruss (MSK) noted that the storm passed further west of the main city area than originally anticipated, potentially sparing re/insurers an even larger loss.
“A slightly east-lying track would have caused much higher damage,” said MSK Managing Director Onnen Siems, adding that disruption was reduced further by the Pentecost holiday season.
MSK estimates industry losses of between €400-600 million to result from the storm.
There was also widespread damage to buildings from hail impact and flooding, and several people were reportedly injured during the storm.
According to MSK, the majority of the damage caused by the storm was experienced within roughly one hour.
The storm comes 35 years after a previous major loss event in the Munich area, when Münchener Hagelereignis hit the city, causing an insured loss of roughly €750 million (or €2 billion today).