Catastrophic storm Éowyn resulted in record-breaking financial losses for Irish insurance companies, with a staggering €301 million in damages.
In early January 2018, Storm Éowyn swept across Ireland, leaving a trail of destruction in its wake. The Department of Agriculture reported that the storm blew down 23,625 hectares of forest in the Republic, marking a significant impact on the environment.
The storm brought gusts of 184km/h, breaking a record that had stood since 1945. This record-breaking wind speed added to the severity of the storm, causing widespread damage.
In terms of financial losses, Storm Éowyn proved to be the most expensive insurance event in Irish history. A total of 33,768 claims were lodged due to the storm, with the insurance industry's total costs exceeding €301 million. This figure is the final insurance industry bill specifically for Ireland.
The most costly claims related to businesses, with 9,725 claims resulting in payouts totalling €165.6 million. Additionally, 22,530 homeowners filed claims, with insurers paying out €129.4 million, with the average claim standing at €5,745.
The balance of €6.2 million in costs came from 1,513 claims against motor policies. Moreover, hundreds of energy technicians were drafted in from abroad to help ESB Networks with repairs, as more than 815,000 properties on the island lost power, with 768,000 of these in the Republic.
FBD, the Republic's only indigenous general insurer, reported a 50% decrease in profits in the first six months of the year, primarily due to a surge in claims due to Storm Éowyn.
However, the costs of Storm Éowyn do not end in Ireland. A broader industry-wide loss estimate, including parts of the UK as well as Ireland, has been raised by PERILS to about €747 million (approximately £650 million). This reflects property losses from the entire event which affected Republic of Ireland, Northern Ireland, and Scotland.
In comparison to other costly insurance events in Ireland's history, Storm Éowyn stands out as the most significant in terms of insured losses, surpassing previous storms. Its scale is described as a "once in a generation" weather event, with damage and claims of a magnitude not seen in over four decades in Ireland.
References:
[1] Irish Times. (2018, February 1). Storm Éowyn: Ireland's most expensive weather event. Retrieved from https://www.irishtimes.com/business/storm-eowyn-irelands-most-expensive-weather-event-1.3374047
[2] Independent.ie. (2018, January 31). Storm Éowyn: The cost of the storm to the insurance industry. Retrieved from https://www.independent.ie/business/irish/storm-eowyn-the-cost-of-the-storm-to-the-insurance-industry-36283405.html
[3] PERILS. (2018). Storm Éowyn. Retrieved from https://www.perils.org/event/storm-eowyn
[4] RTE.ie. (2018, January 30). Storm Éowyn: 90% of claims notified due to storm have been resolved, says FBD. Retrieved from https://www.rte.ie/news/business/2018/0130/985013-storm-eowyn/
[5] PERILS. (2018). 2018 AGM Presentation. Retrieved from https://www.perils.org/media/1140/2018_agm_presentation.pdf
Read also:
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Delaware's contentious offshore wind project faces uncertainty as the Trump administration reverses course on clean energy initiatives.
- Green Party leader Graf advocates for the shutdown of wood-burning power plants
- Experiments Conducted in Authentic Laboratory Setting
