Economic losses due to floods in Europe in 2024 could reach  €2bn-€3bn, according to a preliminary estimate from Gallagher Re.  after huge storms hit the region, leaving a mounting death toll and considerable damage.

The latest flooding caused by Storm Boris has swamped parts of Austria, the Czech Republic, Germany, Poland, Romania, Italy, , Slovenia and Hungary. It follows significant flooding in southern Germany in May and June this year leading to the estimated bill for damage.

European Commission President Ursula von der Leyen said the European Union would make billions of euros available to help central Europe recover from the severe floods. However, Poland  Finance Minister Andrzej Domansk has said that the pledge worth 5 billion euros ($5.58 billion) may not be enough to cover Poland's losses.

Addressing the European Union, EU crisis management commissioner Janez Lenarčič said the floods and the wildfires currently raging in Portugal are evidence of “climate breakdown. Europe is the fastest-warming continent globally and is particularly vulnerable to extreme weather events like the one we are discussing.”

Flooding is already the costliest natural hazard for European countries according to UK Environmental consultant JBA Risk Management with river flooding alone costing €7.8 billion each year. This is expected to increase as economies continue to grow in high flood-risk areas and climate change leads to greater and more intense precipitation.

Following the impact of Storm Boris, hundreds of millions of euros’ worth of emergency funds have been freed by the Polish, Romanian and Austrian governments and the Czech government is considering altering its 2024 budget due to the flood-related damages.

Polish Prime Minister Donald Tusk is channelling 1 billion zloty ($260 million) to flood-affected areas, as well as appealing to the European Union for financial help. The Czech government may amend its 2024 budget because of the flood-related damages, according to Finance Minister Zbynek Stanjura.

Austria has freed up €300 million ($334 million) in emergency budget reserves, while Romania is allocating an initial 100 million lei ($20 million) to those affected.

Analysis by scientists at ClimaMeter — a project funded by the EU and French National Centre for Scientific Research — found that climate change means that depressions like Storm Boris have become 20% more intense in the past two decades compared with the preceding 22 years.

W Denis arrange specialist Natural Catastrophe Peril (including Flood) protection for organisations throughout Europe and the World. This includes both conventional (re)insurance as well as parametric solutions. For more information please contact:

Eastern Europe

Vida.Jarasiunaite@wdenis.eu

Southern Europe

Christos.Hadjisotiris@wdenis.com

Western Europe &/or elsewhere worldwide

Mark.Dutton@wdenis.com