Storm balance sheet

Insurers fear losses of up to €700 million

(Bild: Antal Imre)

After the recent storms, the domestic insurance industry is expecting massive amounts of damage. According to the Austrian Insurance Association (VVO), losses of up to €600 to 700 million are expected in Austria. In extreme cases, the billion euro mark could even be breached, they say.

Efforts are now being made to ensure "rapid and unbureaucratic claims settlement", the association announced on Friday. Figures from individual insurers in the industry have already suggested the extent of the damage.

A few days ago, Wiener Städtische, for example, announced that it alone expected a claims volume of up to 100 million euros. Niederösterreichische Versicherung is also expecting record losses of 80 to 100 million euros.

The other major insurers have so far held back with concrete figures. Generali is expecting a "higher double-digit million euro amount". Wüstenrot, meanwhile, is assuming a claims volume of "at least ten million euros". It is still too early for Uniqa to estimate losses.

VVO: Trend will continue
Losses from natural disasters have risen sharply in recent years and this trend is set to continue, according to VVO. In recent years, Austrian insurance companies have recorded average losses of over one billion euros.

The recent flooding was the largest natural disaster event in Austria this year and will lead to a significant increase in claims. Lower Austria suffered the most from the storms.

Association calls for political steps
The association emphasized that in addition to prevention for such natural events, political steps are also needed. "The insurance industry is proposing that natural disaster risks be inextricably linked to fire insurance (Belgian model)," writes the VVO. Such a solution would ensure - on a voluntary basis - a legal entitlement to compensation.