Insured losses from devastating floods in Germany could be between €4 billion and €5.8 billion (($5.74 billion to $8.32 billion), according to catastrophe modeller AIR Worldwide.

The country bore the brunt of the flooding – the worst since 2002 – along with Austria and the Czech Republic. Switzerland, Hungary, Slovakia and Poland were also affected.

“While the worst damage has already occurred, this flood event is ongoing,” AIR Worldwide said.

Hannover Re says its net loss may top €100 million ($143.44 million) but should remain well below €200 million ($286.88 million).

More accurate damage surveys will be possible when the water recedes, with levels in Germany, Austria and the Czech Republic now likely to have peaked.

“In view of the rather minimal incidence of major losses to date, this means the major loss budget for the first half-year will probably not be fully utilised,” Hannover Re said.

Ratings agency AM Best says economic losses are likely to far exceed insured losses.

“The first five months of [this year] have been benign for natural catastrophes and large losses and, as a result, the flood losses are well within most companies’ cat loss budgets.”

Rate rises and higher deductibles are expected on flood cover and possibly non-flood components of retail and commercial property policies, according to AM Best.

The company predicts business interruption losses from central European manufacturing plants but no significant disruption to supply chains.

“Compared with the floods of 2002, fewer major economic centres and municipal towns have been flooded to date.”