Hannover Re: flood damage higher than expected

by time news

Dhe flood disaster in the Rhineland and the Eifel in July will cost insurers more than previously thought, according to Hannover Re estimates. Michael Pickel, who is responsible for business in Germany on the board of the world’s third largest reinsurer, said on Monday in Baden-Baden that the insured loss in Germany alone would be “closer to ten than nine billion euros”.

This is mainly due to the fact that the individual damage is on average higher than expected. Market leader Munich Re had previously spoken of up to eight billion euros in damage in Germany and more than nine billion across Europe.

Lots of total losses

“It fell down at the back how expensive it was,” said Pickel. In the case of the vehicles affected by the flood, the damage would typically be between 6,000 and 9,000 euros, because many of them can be classified as total losses. For comparable events in the past, it was an average of 3,000 euros.

Even with many houses, the only thing left is demolition, often elsewhere as well. However, only 200 to 250 million euros were left with Hannover Re itself.

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