The Luxembourg Insurance and Reinsurance Association (Association des Compagnies d’Assurances et de Réassurances - ACA) has estimated that the recent floods caused €120 million worth of damage to insured homes and vehicles.
Insurers have already registered 6,000 claims relating to flood damage to homes and 1,000 claims relating to vehicles in Luxembourg. Consequently, ACA has revised its estimate upwards; the association had initiatlly estimated total costs of around €50 million.
According to ACA, the flooding of 14 and 15 July 2021 is the most costly disaster in the history of Luxembourg insurance. Insurers have paid out €230 million over the past three years for claims related to natural disasters, namely the storms in Vallée de l’Ernz in 2018, the tornado in 2019 and the thunderstorms in June 2021. The recent floods alone have generated costs of €120 million to repair the material damage caused.
Nevertheless, the insurers concerned have posted solvency margin rates of over 200%.
Marc Hengen, Managing Director of ACA, commented: “The extent of these recent floods has shown the importance for everyone of being attentive to weather warnings and forecasts. ACA would like to salute the efforts of the emergency services and our hearts go out to all those who, during this inclement weather, found themselves or are currently in precarious situations".
