Although non-life insurance section has been stagnating for several years and it will climb on year 2003 level in 2015, in some cases property insurance prices can rise. This development is mainly caused by the greatest natural disaster- floods.


This year’s floods were not as dramatic as in 2002 however it definitely afflicted insurance market. Insurance companies met with palpable rise in insurance reimbursement, thus costs. That can affect especially “insurance companies of insurance companies”, that determine prices of “catastrophic collateral of insurance companies, from which the end prices for retailing insurance are made.



Two different currents

Next development is viewed on by two different opinions. Both currents refuse rise in property insurance prices and entrepreneurship by more than 10 %. This had been caused by floods in 2002. According to one opinion, it is sure to expect certain changes.


For example according to Tomas Novotny, leader of AON Benfield team for middle and east Europe, rise in retail insurance can be assumed. It is logic that losses from last year will show in insurance rates. Price rise should be in hundreds.


However, according to another opinion the influence will be very slight. All around the World there have not been many serious natural disasters that would have to be reimbursed. Therefore insurance companies dispose of sufficient available funds or to say surplus.



Map specification will help some but also harm

All experts agree is an influence of flood map specification. These bring information about the flood endangered areas or where is a danger of floods caused by rain fall. Now the specification also brings information about the depth of the eventual flood.


Experts are mostly of opinion that now, it will be possible to insure property that had not been possible to insure before. According to the new maps, up to 9 % of properties could be in more favourable flood area. This would mean also more reasonable insurance premium. On the other hand, many objects will also become uninsurable.