PERILS Reports Updated Loss Estimate for September 2024 Floods
The Zurich-based catastrophe insurance data provider, PERILS, has released its third industry loss estimate for the floods that affected Central Europe and Italy in September 2024. The updated total loss is now estimated at €2.192 billion.
Background: The low-pressure system, known as Boris or Anett, unleashed persistent heavy rains across Central Europe in mid-September 2024. This led to significant flooding in Eastern Austria, the central and eastern regions of the Czech Republic, and southwestern Poland. The system later moved into central Italy, causing additional flooding in the regions of Emilia-Romagna and Marche.
Methodology and Loss Estimates
PERILS has employed a dual approach in calculating this new figure. The estimate is based on a combination of their standard methodology, PERILS CORE, which involves extrapolating loss data from affected insurers to a full market level, and the former CRESTA CLIX methodology, now called PERILS EXTENDED, which includes expert assessments from a wide array of insurance industry sources.
According to PERILS, this integrated approach allows them to function as a single source for natural catastrophe industry losses outside of the United States.
Previous loss estimates by PERILS were reported as €2.080 billion and €1.886 billion, released six weeks and three months after the event, respectively.
Significance and Impact
Christoph Oehy, CEO of PERILS, highlighted the significance of the event, describing it as the largest flood loss in Europe since the catastrophic ‘Bernd Floods’ of July 2021. The 2024 floods have added to the global tally of heavy flood-related losses, which include severe events like the Dubai Floods in April, the Rio Grande do Sul Floods in Brazil during April and May, the Southern Germany Floods in June, the Ex-Hurricane Debby floods in Canada in August, and the Valencia Floods in Spain in October.
Oehy further elaborated, “By incorporating CRESTA CLIX into our framework, we provide a more comprehensive view of the Central Europe Floods. The fusion of PERILS CORE and PERILS EXTENDED is a significant advancement for the risk transfer market based on industry losses. We anticipate collaborating with the industry to explore new possibilities and drive further innovation.”
