Moody’s Estimates €3.5B Insurance Loss from Spanish Floods: Moody’s estimates that the floods that ravaged Spain’s Valencia region last month will cause total insurance losses exceeding €3.5 billion ($3.8 billion). This projection comes from the first 72,000 insurance claims, with more anticipated in the coming weeks. The rating agency’s analysts also noted that while the full economic impact on affected regions isn’t clear yet, significant losses for both public and private sectors are expected.
Devastation from the Worst Natural Disaster in Years: Spain’s recent floods and mudslides, the worst natural disaster in memory, have been catastrophic. Over 200 people have died, and some are still missing. At least 75 cities and towns were hit. Mud still covers streets, tens of thousands of cars were damaged, many lost their homes, and roads and train lines also suffered. The Spanish government has announced a €10.6 – billion financial recovery package, including direct aid and loan guarantees. Prime Minister Pedro Sanchez said more aid will come.
Insurance Claims and the Role of the Consortium: Around 4,500 Valencia – area businesses were directly affected, half at risk of closing. At least 53,000 hectares of agricultural land were damaged, with crop losses around €150 million. Insurance claims are likely to be handled by a public fund, the insurance compensation consortium, established in Spain to cover extraordinary incidents not usually in private insurance. Bloomberg Intelligence analysts said private companies like Mapfre, Mutua Madrilena, Allianz, Axa, GCO, and Generali will only pay part, and the largest – ever insured loss in Spain will mostly be covered by the consortium.
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