Flood claims could reach €50m, insurers estimate

Luxembourg insurance companies might need to pay up to €50 million in flood claims after many parts of the country became inundated following torrential rains, the Luxembourg Insurance and Reinsurance Association (ACA) told the Luxembourg Times on Thursday.

“Our very first rough estimate is that insured losses could reach up to €50 million,” Marc Hengen, CEO of ACA said in an email.

People may be insured for floods as optional coverage on their homes and cars. “There is no (such) standard for professional or commercial risks,” Hengen said.

The insurance industry saw sales tumble last year due to the pandemic, driven by less premium collected in the life insurance business. On the contrary, the non-life sector thrived and posted sales almost 5% higher compared to the year earlier, the insurance sector regulator Commissariat aux Assurances (CAA) said on Wednesday.

Experts warned that natural disasters in general weigh the heaviest on the industry performance.

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