Catastrophic flood insurance payments total 90 million dollars
Lower Austria Insurance Faces Largest Loss Event in 100-Year History
In a significant turn of events, Lower Austria Insurance, a century-old institution, faced its largest loss event in 2024. The primary driver of this historic loss was a devastating flood in September, followed by a series of severe thunderstorms and hailstorms earlier in the year.
The flood in Lower Austria, in September 2024, caused significant damage, resulting in a record-breaking 16,000 claims. The resulting financial burden was substantial, amounting to approximately 90 million euros for the insurance company. This event was the cause of the highest number of claims ever recorded by Lower Austria Insurance.
The flood disaster in September 2024 was not the only contributor to the growth in Lower Austria Insurance's premiums in 2023, but it significantly impacted the total. The company experienced a 7.1% increase in premiums in 2023, totaling 435.2 million euros. The damage, accident, and life insurance sectors contributed to this growth.
It's important to note that the insurance payments in the damage/accident sector in 2024 were primarily due to the flood disaster. Compared to 2023, these payments increased by 58.5%, totaling 345.3 million euros. The damage from the September flood disaster was not included in the initial 435.2 million euros total premiums reported in 2023.
The severe weather disasters in 2024, including the significant series of thunderstorms with hail that affected Austria, France, and Germany in June, were also a significant factor. These events caused overall losses around US$1.2 billion, with insurers paying claims totalling approximately US$0.8 billion in the affected region, including Lower Austria.
The flood disaster in September 2024 and the series of thunderstorms with hail in June 2024 marked a challenging year for Lower Austria Insurance. However, the company's resilience and commitment to its customers remain unwavering as they navigate these trying times. Lower Austria Insurance announced the details of its 2023 financial growth on Wednesday.
- The flood disaster in September 2024 and the series of thunderstorms with hail in June 2024, which were significant factors in the overall losses around the industry, affected not only Lower Austria but also France and Germany.
- The growth in Lower Austria Insurance's premiums in 2023 was partially attributed to environmental-science factors, as the damage, accident, and life insurance sectors, which were affected by the severe weather disasters, contributed to this growth.
- In the wake of the historic loss event in 2024, which was primarily driven by the flood disaster, and in light of the increasing frequency of such climate-change related events, the finance department of Lower Austria Insurance may need to consider other science-related measures, such as risk management strategies and climate-change adaptation plans, to mitigate future losses.
