FINANCE - INSURANCE

Severe weather

Luxembourg insurers flood damage estimate rises to €120 million



Library picture: Flooding in Echternach, 15 July 2021. CGDIS

Library picture: Flooding in Echternach, 15 July 2021. CGDIS

Luxembourg’s insurers trade group has more than doubled its flood damage forecast.

“The torrential rains of 14 and 15 July 14 and 2021 are for insurers the most costly disaster in the history of Luxembourg insurance,” according to the Luxembourg Insurance and Reinsurance Association (ACA).

Luxembourg insurers have received 6,000 home damage claims and 1,000 vehicle damage claims due to this month’s flooding, as of 21 July, ACA said in a press release.

“Insurers have therefore had to revise upwards the estimate of the damage caused by the floods: they reassess the damage caused to the homes and vehicles insured at €120m,” ACA stated.

The group’s “first provisional estimates” issued on 15 July put the figure at €50m.

ACA said insurers have paid out €230m in claims for three natural disasters in recent years: storms in the Vallée de l’Ernz in 2018, the 2019 tornado and thunderstorms in June 2021.

Nonetheless, Luxembourg insurers had posted “solvency margin rates of over 200%,” ACA reported, double the regulatory minimum.