Overview of the Catastrophic Floods
Zurich-headquartered catastrophe insurance data firm, PERILS, has released its third industry loss estimate for the severe flooding event that impacted Central Europe and Italy in September 2024. The updated loss figure now stands at a substantial €2.192 billion.
Details of the Flood Event
In mid-September 2024, a low-pressure system known as Boris (alternatively referred to as Anett) swept across Central Europe, resulting in sustained heavy rainfall. This led to significant flooding across Eastern Austria, the central and eastern parts of the Czech Republic, and southwestern Poland. The system subsequently advanced towards central Italy, causing additional flooding in the regions of Emilia-Romagna and Marche.
Methodology for Loss Estimation
PERILS utilized a dual-method approach for this estimation. The PERILS CORE method involves extrapolating loss data provided by affected insurers to a complete market level. Meanwhile, the PERILS EXTENDED, formerly known as CRESTA CLIX, is based on expert assessments sourced from a broad array of industry inputs.
According to PERILS, “This integrated approach allows us to serve as the sole data source for natural catastrophe industry losses outside of the United States.”
Comparison with Previous Estimates
The current estimate of €2.192 billion is a revision from earlier figures of €2.080 billion and €1.886 billion, which PERILS released six weeks and three months following the conclusion of the event, respectively.
Context and Commentary
Christoph Oehy, CEO of PERILS, remarked, “This event represents the most significant flood-related loss in Europe since the catastrophic ‘Bernd Floods’ of mid-July 2021. It adds to the heavy international flood losses recorded in 2024, which include the Dubai Floods in April, the Rio Grande do Sul Floods in Brazil during April and May, the Southern Germany Floods in June, the flooding caused by Ex-Hurricane Debby in Canada in August, and the Valencia Floods in Spain in October.”
Oehy further explained, “With the integration of CRESTA CLIX into PERILS, we can now offer a more comprehensive perspective on event losses for the Central Europe Floods. The synergy between PERILS CORE and PERILS EXTENDED marks a significant advancement for the industry-loss-based risk transfer market. We are eager to collaborate with the industry to explore these new possibilities and to foster further innovation within the sector.”
