Storm Sabine (also known as Ciara in the UK) is estimated to have caused re/insurance industry losses of around €675 million in Germany, according to the General Association of the German Insurance Industry (GDV).
Sabine caused major disruption in Germany over February 10th and 11th, as winds in excess of 120kmh (75mph) led to flight and train cancellations, as well as widespread power outages.
There are also reports of significant wind damage and injuries caused by falling trees and flying objects.
The GDV believes that Sabine is the sixth worst winter storm to hit Germany since 2002, with the top three being Kyrill in 2007 at more than €3 billion of insured losses, Jeanette in 2002 at €1.3 billion, and Friederike in 2018 at €1 billion.
Based on the €675 million estimate for Sabine, property insurers are expected to pay €600 million for 500,000 claims related to damaged houses, household items, and commercial and industrial companies.
Auto insurers, meanwhile, will face much lower losses of €75 million from around 40,000 claims, the GDV said.
Catastrophe risk modeller RMS said last week that it expects total insurance industry losses from Storm Sabine (Ciara) across Europe will be between €1.1 billion and €1.8 billion, while AIR Worldwide put losses in a similar range, at €1.1 billion to €1.9 billion.
Throughout 2019, storms, hail and heavy rain are estimated to have caused €3.2 billion of damages, which is roughly the same as in 2018 and below the long-term average of €3.7 billion.
While over 90% of homeowners in Germany are insured against storms and hail, only 45% are insured against natural hazards such as heavy rain and floods, the GDV noted.
There is the possibility that storm losses will rise much further across Europe this month after Storm Dennis (Victoria in Germany) hit areas still reeling from Sabine/Ciara last weekend.
With the ground already saturated from heavy rainfall, Dennis has caused major flooding in some parts of the UK, while winds of up to 172kmh (107mph) caused further disruption in Germany.
The quick succession of these two powerful storms could be a significant event for the re/insurance industry, and some companies could be expecting to see erosion of aggregate deductibles or potentially reinsurance claims related to these events.
