2015 U.K. storm Desmond loss estimate at 597 million pounds: PERILS

PERILS AG has revised its loss estimate for the United Kingdom storm Desmond, down again from the previous loss estimate of 662 million pounds to the most current estimate of 597 million pounds.

The third loss estimate for the floods in the U.K., which occurred from Dec. 4 to 24, 2015, relates to storm Desmond and other low pressure systems. The revised estimate of the insured property market loss compares to the second loss estimate of 662 million, issued on March 4 by PERILS, an insurance industry initiative aimed at improving the availability of catastrophe insurance market data.

The original loss estimate on Jan. 15 was 717 million pounds.

PERILS’ industry data are based on information exclusively received from insurance companies writing business in the territories covered by PERILS, the company said in a press release on Friday. The data provided are quality controlled and aggregated, and subsequently extrapolated to industry (or market) level.

Storm Desmond was the most prominent of a series of depression systems which affected the U.K. in November and the first half of December 2015. It brought record-breaking rainfall mainly to the northwest of England in the counties of Cumbria and Lancashire, with the floods peaking on Dec. 5 and 6.

The third PERILS loss report for the “Desmond Floods” contains loss data by CRESTA zone (area code), broken down by residential and commercial property lines. It is the first time that a detailed market loss footprint for a U.K. flood event has been made available, PERILS said in the release. As such, the loss footprint can be used to test modelled loss footprints and assist in improving flood risk assessment for the U.K.

In line with the PERILS loss reporting schedule, the fourth flood loss estimate for the Desmond floods will be published on Dec. 4, 12 months after the event start date.

By late June, PERILS will also release its third loss report regarding the U.K. floods Eva and Frank. In February, PERILS estimated the flood damage for the floods at 536 million pounds. The heavy rain following Eva affected the U.K. from Dec. 25, 2015 onwards, while Storm Frank affected the country from Dec. 29 onwards.