Zurich-based catastrophe insurance data provider PERILS AG has increased its industry loss estimate for the floods in the Emilia-Romagna region of Italy during May to €488 million.
According to PREILS, the loss estimate covers the property lines of business and is based on loss data collected from the Italian insurance market.
This new figure compares to the initial loss estimate of €377 million, which was issued by PERILS on 5 July 2023, six weeks after the event end date.
Outlining the particulars, PERILS explained that after a prolonged period of drought conditions, May 2023 saw bouts of heavy and persistent rainfall and localised thunderstorms causing extensive flooding and landslides in northern and central Italy.
“The worst affected areas were Italy’s Emilia-Romagna region and parts of the neighbouring Marche and Tuscany regions. Some locations recorded half of their annual average rainfall in just 36 hours. The month was Italy’s wettest May since 1951,” PERILS said.
The catastrophe insurance data provider noted that 17 people lost their lives in the ensuing floods which struck first on 2 to 4 May and then again much more severely on 16 to 18 May.
The municipalities of Ravenna, Faenza, Forli and Cesena were particularly badly affected.
PERILS continued, “The economic costs of the event are officially estimated at close to €9 billion. Only a small part of these costs – currently estimated by PERILS at €488 million – is covered by insurance, owing to low flood insurance penetration for private households and small commercial property.”
According to the firm, almost 50% of the economic loss stems from damage to public infrastructure.
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