Post by Allianz

A new report from Allianz Research simulated the impact of a single large flood in 2027 on 17 European economies by 2030 and highlights the power of prevention. The timing is significant. Five years ago today, Germany's deadliest natural disaster in over half a century occurred: the Ahr Valley flood took more than 130 lives and caused 38 billion euros in damage, with insurance covering less than a quarter. Since then, Europe's flood bill has kept rising: 88.6 billion euros in losses in 2020-2025 alone, 40% more than in the first decade of the century. The drivers aren’t more floods, but more value in harm's way, as more homes, businesses and infrastructure are built in flood-prone areas. The report’s findings: 🌧️ GDP losses reach up to 1.0%, with Germany for example losing roughly 108 billion euros and France 79 billion euros. 🌧️ Government deficits widen by 1.3pp of GDP on average, by as much as 2.4pp in Spain. But these losses are not inevitable. Flood prevention returns four euros for every one euro invested, however delivery lags across Europe: without action, annual flood losses in Europe and the UK could rise almost six-fold by 2100 if the climate warms by 3°Celsius. What is one measure your country should prioritize today to reduce flood risk? Link to the full report in the comments. #Allianz