The worst floods in a decade have swept Germany, the Czech Republic, Austria, Hungary and Slovakia causing widespread damage.

Reinsurance specialist Swiss Re stands to lose €300 million from the flooding across Europe, which is estimated to have caused £3.5 billion worth of damage across the sector.

The damage created could have been much worse however, as Swiss Re has credited prevention measures such as the mobile flood barriers used in Prague with helping to spare many regions from large losses.

Swiss Re’s Group Chief Underwriting Officer Matthias Weber commented: ‘Thanks to timely prevention measures, large areas have been saved from flooding.’

Credit rating agency Fitch estimated losses of up to €3 billion in Germany, while Insurance broker Willis estimated claims of €4 billion in Europe.

Europe’s biggest insurer, Allianz, is penciling in claims of €500 million,  before passing on some costs to reinsurers.

What do Reinsurers do?

Reinsurers help insurance companies cope with large claims that would otherwise hit them hard. It spreads the risk of losses over larger areas.

Find out more about reinsurance and read about the day to day work involved in working in reinsurance.