European storm will cost industry billions
Winter Storm Kyrill – the worst storm to hit Europe in eight years – will cost the industry between €4 billion ($6.7 billion) and €8 billion (13.4 billion), according to catastrophe modeler AIR Worldwide.
The storm struck Europe with hurricane-force winds on January 18, causing significant travel and power disruptions, flooding and building damage over the UK, France, the Netherlands and Germany.
Severe gale force winds uprooted trees, tore off roof tiles, and blew doors off buildings, while freight trucks in the UK and Germany were tipped over by wind gusts. Flying debris, including falling tree limbs and billboards, caused significant building damage.
AIR says Germany was the worst hit by the storm, with damages already expected to reach about €2 billion ($3.3 billion). In the country’s hardest hit areas, AIR says as many as two in 10 houses are missing roof shingles, which in this region are typically made of clay or slate.
AIR Director of Atmospheric Science for Research and Modeling Peter Dailey says what’s notable about the event is its “unusually large footprint”.
“The path of damaging winds extends north to south from Scotland to Switzerland and east to west from France to eastern Germany and beyond,” he said.
Munich Re says its pre-tax losses from the event are likely to reach about €600 million ($1 billion).
Because of the large number of small and mid-sized losses still to be evaluated, establishing the definitive loss will take some time, the reinsurer said in a statement.
The biggest individual loss for the reinsurer was the container ship MSC Napoli, which went aground off the south coast of England, and is expected to cost insurers well over €10 million ($16.6 million).
The storm struck Europe with hurricane-force winds on January 18, causing significant travel and power disruptions, flooding and building damage over the UK, France, the Netherlands and Germany.
Severe gale force winds uprooted trees, tore off roof tiles, and blew doors off buildings, while freight trucks in the UK and Germany were tipped over by wind gusts. Flying debris, including falling tree limbs and billboards, caused significant building damage.
AIR says Germany was the worst hit by the storm, with damages already expected to reach about €2 billion ($3.3 billion). In the country’s hardest hit areas, AIR says as many as two in 10 houses are missing roof shingles, which in this region are typically made of clay or slate.
AIR Director of Atmospheric Science for Research and Modeling Peter Dailey says what’s notable about the event is its “unusually large footprint”.
“The path of damaging winds extends north to south from Scotland to Switzerland and east to west from France to eastern Germany and beyond,” he said.
Munich Re says its pre-tax losses from the event are likely to reach about €600 million ($1 billion).
Because of the large number of small and mid-sized losses still to be evaluated, establishing the definitive loss will take some time, the reinsurer said in a statement.
The biggest individual loss for the reinsurer was the container ship MSC Napoli, which went aground off the south coast of England, and is expected to cost insurers well over €10 million ($16.6 million).