Insurance losses from Italy’s mid-May flooding reach €509m
Flooding in northern and central Italy in mid-May this year likely rendered €509 million in insured losses in property lines of business, the Swiss-based nat cat counter PERILS said in its third tally for the event.
PERILS has disclosed its third industry loss estimate for the floods in the Emilia-Romagna and neighbouring Marche and Tuscany regions in northern and central Italy during the period of 2 to 22 May 2023.
The third estimate of the insurance market loss is €509 million. This compares to the previous loss estimates of €377 million and €488 million issued by PERILS six weeks and three months after the event end date, respectively.
The industry loss figure is based on detailed loss data collected from affected insurers and covers the property line of business.
The loss information in the third report provides a breakdown of property losses by two-digit postal codes (low-resolution CRESTA Zones), with the loss amounts and number of claims further divided by residential and commercial lines. In combination with the PERILS industry exposure database for flood cover in Italy, available in identical resolution, the industry loss footprint provides new information on the flood vulnerability of insured property risks in Italy.
In line with the PERILS reporting schedule, an updated estimate of the market loss from the Emilia-Romagna Floods will be made available on 22 May 2024, twelve months after the event end date.
Exceptionally heavy and persistent rainfall affected northern and central Italy during the period of 2 to 22 May 2023, resulting in Italy’s wettest May since 1951. Two peak phases in particular, which occurred on 2 to 4 May and 16 to 18 May, overwhelmed the capacity of river and drainage systems and led to major flooding across the Emilia-Romagna region and parts of the neighbouring Marche and Tuscany regions. 17 people lost their lives, and an estimated 100,000 privately owned properties were affected by flood water. The municipalities of Ravenna, Faenza, Forli, and Cesena were particularly badly hit.
The economic cost of the event is officially estimated at approximately €9 billion, of which around 50% is attributed to public infrastructure losses, PERILS said. The remaining €4.5 billion relates to privately owned residential, commercial, and agricultural property, of which only a small portion – currently estimated by PERILS at €509 million – is covered by insurance. This is because flood insurance is optional in Italy and is often not bought by households and small commercial enterprises.
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