Storm Ciarán to drive “notable” economic and insured loss: Aon

According to the Impact Forecasting division of insurance and reinsurance broker Aon, economic and policy losses caused by Storm Ciarán are expected to be “notable”, with hundreds of millions of euros expected for each.

storm-ciaran-insurance-lossThe largest concentration of insured losses linked to Storm Ciarán is expected to be in the north of France, where the winds were the most violent.

Wind gusts up to 125 mph were recorded from Storm Ciarán, while the storm’s minimum central pressure deepened to be recorded as high as 953 mb.

European windstorm Ciarán formed after a low pressure system accelerated across the Atlantic on a fast jet stream, leading to rapid cyclogenesis and significant deepening of the low.

Wind gusts of hurricane force and above were widely felt, with north-west France, the Channel Islands, the south-west and south of the UK all particularly affected.

Property damage was recorded in some areas, as well as flooding and coastal impacts due to very large waves and high seas.

Deaths were also reported in France (2), Belgium (2), the Netherlands (1), Germany (1) and Spain (1).

Additionally, flooding in northern Italy has also been attributed to the tail end of the same low pressure system, particularly severe in Tuscany.

Aon’s Impact Forecasting commented: “Ciarán will likely result in a notable economic and insured loss, particularly in France.

“From a financial point of view, the expected initial losses following the event amounted to hundreds of millions of euros, with the greatest impact recorded in the most affected departments of the north-west of the France.

“The impact in the UK was ultimately less than initially feared based on some models. An additional and notable number of insurance claims are also expected to be filed in Belgium and the Netherlands.

The brokerage group said “notable” economic and insured losses were initially expected to reach hundreds of millions of euros following Storm Ciarán.

For the United Kingdom, Ciarán follows Storm Babet, which PwC UK estimated would cause a loss to the insurance market of between £450 million and £650 million.

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