Storm Eunice highlights risk exposures for UK insurers
Storm expected to generate bigger losses than Windstorm Dudley, which is expected to cost insurers hundreds of millions of euros
The damaging winds caused by Storm Eunice are likely to unveil some of the risk exposures for carriers with a UK book of business, Swiss Re has warned.
According to Simon Welton, market head for property/casualty, UK and Ireland at Swiss Re, Storm Eunice will highlight the need for more environmentally sustainable infrastructure in the UK to mitigate the damages of future events.
“The effects of climate change will only drive more extreme weather events like this in the years to come, so this is yet another reminder of why we urgently need to strengthen resilience across the country,” Welton said.
Storm Eunice has been designated a red and amber weather event by the UK’s Met Office, with winds expected to reach up to 90 mph in the most significantly affected areas in the UK.
The first red weather warning related to coastal areas in south-west England and south Wales on February 18, with another red warning in place thereafter covering much of the south and south-east of England, with damaging gusts and disruption expected.
Areas included in amber weather alerts are likely to suffer wind gusts up to 70 mph, which could lead to power outages, disruptions to travel and other services and other damage from buildings and trees.
‘The chaos caused by the flurry of storms in recent weeks – and Eunice with us now – must act as a wake-up call to the work that needs to be done and the role the industry must play within this’Storm Eunice succeeds Windstorm Dudley, which became a significant event for European insurers, according to Aon. The broker is predicting total property and motor losses for Dudley in the hundreds of millions of euros.
Simon Welton
Swiss Re
Windstorm Dudley affected parts of western and central Europe between February 16 and 17, bringing maximum wind gusts of 80 mph. In the UK, winds reached 81 mph, causing power outages and travel disruption.
Aon said weather prediction tools have indicated storm Eunice will result in “much more significant” material losses, particularly across the UK, northern France, Belgium, the Netherlands and Germany.
“The chaos caused by the flurry of storms in recent weeks – and Eunice with us now – must act as a wake-up call to the work that needs to be done and the role the industry must play within this,” Welton said.
He added the insurance industry should play a fundamental role in the transition towards a more sustainable investment framework in the UK. Carriers could help progress by deploying new products, offering insights through data and analytics and using data to pinpoint the most vulnerable aspects of UK infrastructure.