Local authorities foresee economic losses of billions of Euros related to the floods in Italy due to the huge disaster, while the insurance industry is expected to bear a small part of the total cost due to a current protection gap for flooding, as stated by Aon.
“Due to the widespread scale of the disaster, local authorities are already expecting economic losses of billions of EUR. While a significant protection gap for flooding remains in place, the impact on the insurance industry is expected to be a small percentage of total costs,” Aon said in its Weekly Cat Report on May 19.
“Damage assessments are still ongoing as many waterways are beyond flood stage. More rain is also expected in the coming days and the situation thus remains critical and many evacuations was announced on May 19.
Heavy rains and flooding have severely affected Italy’s Emilia-Romagna and Marche regions. As of May 19, there are 14 confirmed deaths and many missing individuals.
More than 10,000 people were forced to leave their homes, with significant evacuations in the provinces of Bologna, Forlì-Cesena, and Ravenna. Firefighters conducted more than 2,175 emergency missions, and approximately 400 roads were closed due to flooding, the report said.
In addition, there were more than 50,000 power outages and significant agricultural losses in tens of thousands of hectares of land, affecting more than 5,000 farms.
The Emilia-Romagna region is still recovering from previous flooding earlier this month, which caused two deaths and extensive damage to property and infrastructure.
Croatia, Bosnia and Herzegovina, Austria, and the Czech Republic also experienced flooding, resulting in submerged buildings, power outages, and minor property damage.