European Storms Took Economic, Insurance Toll in June: Aon

July 11, 2019

Severe European storms during June had an economic price tag of $2 billion, while insurers anticipated claims topping $1.5 billion, according to the latest edition of Aon’s monthly Global Catastrophe Recap report.

The report said most of these losses came from two different systems. The first involved an outbreak of severe weather between June 10-12, when large hail, strong gusts and intense rainfall hit multiple countries of Central Europe. Significant hail damage occurred in the greater Munich metro region, with additional damage occurring in other areas of Germany, Poland, Slovenia, the Czech Republic and Northern Italy. Europe-wide economic costs were expected to minimally exceed €915 million ($1.1 billion), while insurers expected claims of at least €740 million ($830 million).

Another series of severe storms affected portions of Western and Central Europe during the weekend of June 15-16. Southwest France, canton Genève in Switzerland, Niedersachsen in Germany and parts of the Czech Republic and Austria received the brunt of the storms, while a state of disaster was declared in France. Total economic losses resulting from large hail, severe winds and intense rainfall was expected to minimally top €500 million ($560 million), with insurers covering most of the losses.

“An active start to summer in the Northern Hemisphere featured many large-scale weather events including severe thunderstorms, flooding, extreme heatwaves, and drought,” said Michal Lorinc, catastrophe analyst within Aon’s Impact Forecasting team.

“Europe was at the center of many of these perils as record temperatures engulfed parts of France, and large hail and damaging winds led to more than $730 million in insured costs in Germany alone,” he added.

United States’ Events

In addition, severe weather also affected the United States during the month, including periods of powerful thunderstorms and flooding rains that hit parts of the Rockies, Plains and the Southeast from June 8-10. At least three people were killed and more than a dozen others injured. Total economic losses were estimated at up to $575 million, while public/private insurers payouts were estimated to reach $400 million.

Seasonal China Floods

Seasonal rainfall and flooding began across parts of central and southern China, with the hardest-hit provincial regions included Guizhou, Jiangxi, Guangxi, and Guangdong. During the month of June and into July, at least 200 people were declared dead or missing, with nearly 200,000 homes and other structures incurring flood inundation. Widespread damage to more than 430,000 hectares (1.06 million acres) of cropland also occurred. The economic cost of the seasonal flood toll in China was listed at CNY42.4 billion ($6.1 billion).

Aon listed additional natural catastrophe events across the global during June including:

Source: Aon

*This story ran previously in our sister publication Insurance Journal.