German flood losses estimated at €4bn

Catastrophe modelling firm AIR Worldwide estimates insured losses in Germany from the recent floods in central Europe will be between €4 billion and €5.8 billion. The overall economic impact is expected to be much higher. While the worst damage has already occurred, this flood event is ongoing.

"An extraordinarily wet May and several days of heavy and relentless rainfall in June have resulted in the worst flooding to hit parts of central Europe in many years," said Yorn Tatge, managing director of AIR Worldwide. "Germany, Austria, and the Czech Republic have suffered the brunt of the flooding, the worst since the Elbe flood of 2002, but Switzerland, Hungary, Slovakia, and Poland have also been affected."

In comparison, AIR estimates that the 2002 Elbe floods, which affected a smaller area, would cause approximately €5 billion in insured losses or more were it to recur today, after accounting for changes in the penetration of flood coverage and the growth in building stock and values.

Tatge continued: "Floodwaters hit Germany hardest, particularly the east and south German states of Thuringia, Saxony, Saxony-Anhalt, Lower-Saxony, and Bavaria. Several levees along the Elbe River near Magdeburg, the capital of Saxony-Anhalt state, were breached or in danger of a breach as flood water rose more than 16 feet above normal. In Passau, located at the intersection of the Danube, Inn, and Ilz rivers, floodwaters hit their highest level since 1501, while the Saale River in Halle, Germany, reached its highest level in its 400 years of record keeping."

Over the course of two days (30 May – 1 June), portions of Austria received the equivalent of two and a half months of rainfall (150 to 200 mm). Isolated regions experienced 250 mm. The rising Danube River threatened the cities of Linz and Melk, and flood alerts were issued for the western provinces of Vorarlberg, Tyrol, and Salzburg, as well as northern parts of Upper Austria. Flooding in Tyrol and Styria is considered the worst in the area since 2002.

In the Czech Republic flood warnings were put in place for 40 cities, including the capital, Prague. A state of emergency was also in effect in Prague, as well as other areas including South and Central Bohemia, Plzen, Liberec, Hradec Kralove, and Usti.

Budapest, the capital and largest city in Hungary, is expected to see record flood levels but should not receive significant damage.