Author: Mark Hubbard
Between 2006 and 2020, Slovenian insurers paid EUR 850 million in claims for extreme weather, mostly related to property and vehicles1.
2008 has been the largest loss year on record, but 2023 will exceed 2008 due to severe storms and hail in June and July, followed by the devastating floods and torrential rain in August. Agriculture, road and energy infrastructure were particularly affected, with hundreds and homes and commercial buildings damaged and at least 10 bridges collapsed.
Due to the higher-than-anticipated number of claims, the Slovenian Government raised its initial EUR 500 million loss estimate to several billion2. Slovenia’s largest insurer Zavarovalnica Triglav has said the catastrophe (Cat) claims from floods would have an adverse impact on its overall 2023 results, but that the impact would be limited by adequate reinsurance protection. The Sava Insurance Group, the country’s second-largest insurer, purchased a backup reinsurance cover for part of its excess-of-loss Cat programme after sustaining extensive flood losses that drove between EUR 65 million and EUR 70 million of claims to reinsurers3. How will the reinsurance market react? Will reinsurers increase attachment points and force insurers to retain more risk?
To learn how Nat Cat events in different parts of the world are shaping the future of insurance, read the seven-part report, How Is the Increasing Risk of Extreme Weather Changing Insurance?
