20 February 2014 Insurance

Saturated soil could lead to further flooding says Guy Carpenter

Saturated ground in Europe could lead to further flooding says Guy Carpenter in its Europe, Middle East And Africa Catastrophe Review, 2013.

Following a year of extreme flooding which saw insured losses from the worst event reach $4.1 billion in central Europe, insurers could face further costs due to soil saturation levels.

“Soil saturation in many areas of Europe is a concern for 2014 and amplifies the risk of flood during normally wet months,” said the report.

Last year persistent heavy rain caused the Vltava, Elbe and Danube Rivers to overflow their banks and in some cases breach flood defences. Countries affected included Germany, the Czech Republic, Slovakia, Austria, Switzerland, Hungary and Poland.

Germany was particularly badly affected as the floods inundated countless homes, businesses and crops, severed road and rail routes and cut power and drinking water supplies to thousands of people.

According to the report, 30,000 people were evacuated from the eastern cities of Dresden and Halle after the highest water level in 400 years was recorded on the Salle River.

“The flooding was followed by a series of severe hail events that affected Germany in late July. Hailstorm Andreas caused significant damage in northern and southern regions of Germany and this event became one of the costliest natural disasters to hit Germany, with estimated insured losses of $3.7 billion,” said the report.

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