Storm Emma bill could run into hundreds of millions
The total financial cost, including business interruption, of Storm Emma, which affected a large area of Europe during the second half of February, could reach hundreds of millions dollars – though the figure will very likely be higher, with a high volume of filed insurance claims reported.
That is according to Impact Forecasting, Aon Benfield’s catastrophe model development team, in the latest edition of its monthly Global Catastrophe Recap report.
The report reveals that an outbreak of cold, arctic air and Storm Emma affected a large area of Europe during the second half of February and into early March as temperatures fell to some of their coldest levels in decades.
Many countries reported frigid conditions, while others reported unusually heavy snow and freezing rain accumulation – including in the UK. Thousands of flights were cancelled or delayed and many different sectors were closed due to inclement conditions. Local governments reported that at least 88 fatalities had occurred due to hypothermia and other incidents.
Meanwhile, the report also noted that a powerful magnitude-7.5 earthquake struck Papua New Guinea on February 26, killing at least 75 people and injuring more than 500 others. Officials reported that thousands of homes and other structures were destroyed due to ground shaking and subsequent landslides, with even more extensive impacts cited to regional infrastructure.
Steve Bowen, Impact Forecasting director and meteorologist, said: “Nearly every major continent recorded noteworthy natural disaster impacts during the month of February. While financial costs from large-scale weather events in Europe and the US are likely to be easily absorbed by local governments and the insurance industry, the impact to less affluent regions is expected to pose a greater challenge for recovery.
“The scale of damage in the South Pacific Islands from Cyclone Gita, and the major earthquake in Papua New Guinea, highlight the continued need to ensure that insurance programs or risk mitigation solutions are in place to help expedite the short- and long-term recovery processes.”
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