Southern Germany Floods Caused up to $2 bn Insurance Loss from 2024
PERILS has released its third insurance industry loss estimate for the floods that hit southern Germany from May 31 to June 6, 2024
Flood insurance
Flood insurance provides financial protection against losses resulting from flooding. It covers damage to property and belongings caused by excessive water from storms, heavy rain, or other sources. Typically, this insurance includes coverage for both structural damage and personal property within a home. It is particularly important for those living in flood-prone areas or regions with high water risk.
Unlike standard homeowner’s insurance, which often excludes flood damage, flood insurance specifically addresses these risks. Policies are often purchased through the National Flood Insurance Program (NFIP) in the U.S., though private insurers may also offer coverage. The goal of flood insurance is to help individuals and businesses recover more quickly after a flood, minimizing financial hardship and aiding in the rebuilding process.
Catastrophic Losses & Rising Global Flood Insurance Risks: $135 bn in 2024
2024 is on track to become the hottest year recorded. A warming climate has intensified natural catastrophes, especially in Europe, which faced severe flooding
Flood Risk Creates Credit Challenges for Eastern & Southern US Insurers
Hurricane Helene’s recent destruction underscores the rising flood risk impacting local economies and tax bases in the Eastern and Southern United States
Increasing Consumer Awareness Will Drive Private Flood Insurance Growth
Inland areas are increasingly vulnerable to flooding from both tropical storms and severe convective storms, yet the number of homeowners who purchase flood insurance
U.S. Flood Insurance Market Review. Top 10 Flood Insurers
The U.S. flood insurance market had grown 24% – from $3.3 bn in direct premiums written to $4.1 bn between 2016 and 2022
Insurers Poorly Prepared for the Increased Losses by Catastrophe & Flooding
Re/Insurers poorly prepared for the increased loss frequency and intensity wrought by flooding and climate change as this year’s North Atlantic hurricane season
Flood Risk is Insurable. How Does Insurance Industry Can Close the Protection Gap?
Floods affect more people across the globe than any other natural disaster. The deadly floods within year were a tragic reminder of the increasing threat
Private Flood Insurance in California Accounts for over 40% of Entire Flood Market
As private flood insurance accounts for over 40% of California’s entire flood market—a significantly larger share than in the other leading states—the ongoing flooding issues
Natural & Man-Made Catastrophe Loss Outlook: Insurance Covered only 43%
Natural and man-made disasters resulted in global economic losses of $280 bn. Insurance covered $119 bn economic losses
Re/Insurers’ Role in Building Flood Resilience & Close Protection Gap
Today risk assessors use a wide set of tools ranging from sophisticated flood hazard maps to fully probabilistic risk models, but more can be done
European reinsurers recorded stronger return on equity (ROE) in 2023 and 2024, exceeding their cost of equity in three of the last four years
Global re/insurers reported improved underwriting results and capital positions. These gains came alongside rising uncertainty around reserve development and expanding loss gaps
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
Wider natural catastrophe exposure continues to pressure financial results across the property and casualty (P&C) insurance industry