In a joint communication, the French Insurance Federation and public and private reinsurance group CCR, have said that claims from flooding and wind damage caused by recent storm Alex has already resulted in EUR 288 million in claims in France.
The figure is expected to rise as more claims are filed, particularly in the badly hit Alpes-Maritime region where extreme rainfall and flooding washed away buildings and roads.
Around 14,000 claims are expected in the Alpes-Maritimes region from the flooding related to windstorm Alex.
Storm Alex blew in from the Atlantic in early October and impacted France’s western coastline with wind gusts reaching as high as 116 mph.
Notable rainfall was also experienced across Brittany and parts of France as the impacts of storm Alex travelled south.
But the most costly impacts were seen in the Mediterranean region of France and Italy, where extreme precipitation was recorded, with record levels of rainfall experienced and one total counted at 19.7 inches in 24 hours.
The 14,000 claims expected in the Alpes-Maritime in France are estimated to have caused at least EUR 210 million of insurance and perhaps reinsurance market losses.
So far, insurers have already recorded 8,250 claims and the FFA and CCR say that the estimated cost of EUR 210 million is split as 72% residential property, 25% business and agricultural property and 3% auto losses. The estimate does not include damage to public infrastructure that is not insured.
It’s expected this figure will be revised, likely upwards, as more claims come in and all affected areas are assessed for damage.
On top of the severe flood losses in the south, France has also seen 39,040 insurance claims filed for wind damage across northern and western regions in Brittany and on the Atlantic coast, which are expected to drive a further EUR 78 million of insured losses.
Which gives a total so far of EUR 288 million, which is approximately US $340 million.
That figure could rise significantly it seems and if the damage experienced in Italy is also taken into account the insured loss will be much higher.
The broker said that storm Alex would likely drive somewhere north of US $3 billion of economic costs to the wide region affected, with US $1.75 billion expected in the Alpes-Maritime and southern region of France.
As a result, it’s safe to assume the insurance industry loss rises further, as the claims are assessed over the coming weeks.