According to a report by Bloomberg a few days ago, the devastating floods in central Europe, northern India and Canada during June 2013 will cost a staggering $27 billion in flood-related losses. About $22 billion of those losses are as a result of the floods in Europe, with insured losses on the continent expected to be as high as $5.3 billion, mostly in Germany. Losses in Canada are expected to amount to $3.8 billion in Canada, with about $1 billion in insurance costs. Economic losses in the India floods (mostly Uttarakhand) are thought to be $1.1 billion, and insured costs around half a million.
What was different with the June floods was that the sudden increase in figures wasn’t a result of tropical storms (as in 2011) but as a result of exceptionally heavy rainfall, in many cases such as Calgary and Germany, in heavily populated areas.
Bloomberg’s report was based on a document from AON Benfield. The document stated that 2013 has seen $37.8 billion worth of flood related losses up to the end of June. On average we would be seeing flooding costs at around $20 billion at this point of the year. However the figures for the first half of 2013 still trail well behind the figures for the equivalent period in 2011, where flood related costs stood at around $55 billion. This was the period of massive flooding in Australia, China and USA.
Sources: Bloomberg; AON Benfield
With the Uttarakhand, Alberta and Germany floods still so fresh in the mind, it’s hard to think that 2011 was even worse for flood damage!