Storms, hail and floods: German insurers expect relatively low natural disaster losses

German insurers expect natural disaster losses to remain below average this year, largely because the country avoided severe winter storms. Storms, hail, heavy rain and flooding caused about 950 million euros in insured damage during the first half of the year.

The German Insurance Association expects losses of roughly 2 billion euros for the full year, which would be more than 1 billion euros below the average. That forecast depends on the absence of major disasters through the end of the year.

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The low losses in the first half of the year were simply luck.

Jörg Asmussen, the association’s chief executive, said the low first-half figure reflected luck rather than a reversal in climate trends. “The low losses in the first half of the year were simply luck,” he said. The association’s longer-term figures show that extreme weather linked to rising temperatures has increased, along with the damage it causes.

Over the past decade, heavy rain, flooding and sewer backflow caused an average of 2.4 billion euros in annual damage to homes, apartments and businesses, according to the association. The average stood at about 1.4 billion euros from 2000 to 2009.

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This hot summer with record temperatures also shows that climate change is continuing.

Asmussen also pointed to a summer marked by record temperatures, saying, “This hot summer with record temperatures also shows that climate change is continuing.” He added that individual storms can still cause heavy losses at any time.

The figures cover insured damage only. Buildings in Germany must be insured against storms and hail, but coverage for flooding and other natural hazards is not mandatory. The association says 59 percent of homes currently have coverage for risks such as flooding and heavy rain.

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Individual storms can cause heavy losses at any time.