GERMAN FLOODS WILL HIT P&C INSURERS' PROFIT: MOODY’S

Devastating floods in Germany last week are expected to dent insurer profits and may put upwards pressure on rates, according to Moody’s. The Germany insurance industry association (GDV) estimates the losses from storm Bernd and subsequent flooding will cause insured losses of between €4bn and €5bn, although economic losses from the floods are likely to be significantly higher. As a result, Moody’s expects the German property/casualty sector's 2021 gross combined ratio to deteriorate to 96-99% from 90% in 2020. The event is widely viewed as a consequence of climate change, which increases the frequency and severity of extreme weather events, Moody’s said. “Demand for homeowners' insurance that protects against climate risk is likely to increase as a result. Offering such protection without substantial premium increases could be challenging for German insurers,” it added.