Storm Boris could trigger some of the worst flood losses in central and eastern Europe for insurers in decades, according to data from Bloomberg Intelligence.

With parts of the Czech Republic, Poland, Austria, Slovakia, Hungary and Romania submerged, flood losses like those in 1997, 2002 and 2013 are possible (€2-€4bn in 2023 values), according to BI's analysis.

The share of the economic costs of the floods paid by the insurance industry will vary by country. Flood cover take-up is relatively high (across both personal and commercial lines) in Austria and the Czech Republic. In Poland, the bulk of commercial risk is covered, but only a small proportion of homes and autos are protected.

Charles Graham, senior insurance analyst at BI, commented: “Torrential rain over Sept. 12-16 wreaked by storm Boris has brought widespread flooding to parts of central and eastern Europe which threatens to cost as much as the catastrophic floods of 1997, 2002 and 2013. With flood waters yet to recede and other areas at risk as water flows downstream, it will be some time before the full cost can be assessed.

“Many areas have experienced exceptional rainfall in the past two years, suggesting that there may be a link between the increased severity of convective storms and rising sea-surface temperatures in the Mediterranean.

“The non-life insurance markets in central Europe are highly concentrated and dominated by just a few insurers led by VIG, UNIQA, Generali and Allianz. In Poland, PZU is the sector's leader, followed by Warta (Talanx) and Ergo Hestia (Munich Re).”

---