Perils issues final estimate for German floods of 1.56 billion euros

By Michael Jones

June 6 - (The Insurer) - Loss aggregator Perils has disclosed a fourth and final industry loss estimate of 1.56 billion euros ($1.78 billion) for the flooding that affected parts of southern Germany between May 31 and June 6, 2024.

The updated figure is down from the 1.58 billion euro estimate issued six months after the event end date.

Perils' estimate covers the property line of business and is based on loss data collected from affected insurers.

The loss estimate is split 63% to personal lines property and 37% to commercial lines property.

Losses were concentrated in the states of Baden-Württemberg and Bavaria, which make up more than 96% of the total industry loss.

During the period, southern Germany experienced severe flooding in Bavaria and Baden-Württemberg due to extreme rainfall locally surpassing 1-in-100-year levels.

Perils said the event was well managed by the German insurance industry but triggered more discussion on mandatory flood insurance for homeowners.

Luzi Hitz, product manager at Perils, said it was "not surprising that mandatory flood insurance, which is in place in France or Switzerland, is being seriously considered in Germany”.