“Record High Damage from Extreme Weather: Lessons Learned and Future Preparations”

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  Heleen Ekker

  editor Climate and Energy

The damage caused by extreme weather rose sharply last year and even reached a record high. This is reported by the Dutch Association of Insurers. In 2022, an amount of more than 886 million euros was paid out, according to the so-called Climate Damage Monitor of the insurers. Since 2007, it has been tracking the damage caused by lightning, hail, precipitation, flooding, frost and storms.

Last year, damage was mainly caused by three February storms, named Dudley, Eunice and Franklin. Together they caused a damage amount of 714 million euros. Never before have insurers received so many claims within a week as then. Four people were also killed.

Until last year, the damage caused by extreme weather was highest in 2016, mainly due to a hailstorm in North Brabant. The floods in Limburg in 2021 led to 210 million euros in damage.

Weather extremes are costing society more and more money, warns Richard Weurding, CEO of the Dutch Association of Insurers. “We see an upward trend over the years, but we also see that the peaks are getting higher and higher. And that erratic course, together with the trend increase, indicates that the climate is changing and that the damage will increase as a result.”

By far the most damage is therefore caused by storms. “This is partly normal in our climate,” says Weurding. “But we also see heavy rainfall, especially in the summers and hailstorms that can cause a lot of damage. And that with those storms added up gives a different picture of damage over the years.” The Dutch Association of Insurers hopes that the damage monitor will raise awareness.

If people prepare better for extreme weather, damage can be prevented. Earlier this year, the World Meteorological Organization reported that prevention can lead to thirty percent less damage. This way people can ensure that things are secured in time, windows are closed and cars are moved to prevent them from being hit by falling trees.

Weurding also sees a task for the government. “Then we are mainly talking about adapting the environment to the more extreme weather, adaptation. You have to think of the way of building, the infrastructure and also ensuring that the sewer system has enough capacity to discharge more water. But also: where let’s build.” Building in the floodplains, for example, might be technically possible. “But you also have to look at the longer term: is that wise and can we keep it insurable?”

If weather extremes continue to increase in the future, insurance premiums will not be left unaffected, the insurers expect. “If the damage starts to increase, and we are not able to sufficiently limit that damage, then I think it is inevitable that the premiums will also increase in the future,” says Weurding. Better prevention is also important to keep damage insurable.

“We see it worldwide, we see it in Europe. It is therefore not special what is happening in the Netherlands. What we want to achieve with the publication of this monitor is to increase awareness, so that everyone gets to work with it even more.”