Fewer issues from large storm damage last year than in 2022, says insurer Achmea

Insurance company Achmea had less trouble with large damage from storms last year compared to 2022. Partly due to this, the Dutch insurance company's damage department achieved a better operational result than a year earlier. Financial director Michel Lamie did notice a "hardening of the reinsurance market," with the possibility remaining that the reinsurers will raise their premiums again.

Reinsurers are large international groups that Achmea uses to cover themselves against significant calamities. Damage from small storms are usually not reinsured, but significant disasters are. The reinsurers raised their premiums by ten percent last year, mainly due to an increase in environmental damage. Achmea had earlier warned that extreme weather could cause reinsurers to raise their premiums.

Reinsurers base their premiums on worldwide developments. "There may have been less damage from storms in the Netherlands, but there was damage in other countries. And that has as much influence on the premiums we pay," he stated. "Worldwide, you can see a rise in weather-related damage. And that puts pressure on the premiums. Time will tell when it comes to this year, but you could say there is upward pressure."

The damage sector from Achmea booked an operating profit of 309 million euros in 2023, which is an increase of 20 percent compared to a year earlier. Other departments within the largest insurance company in the Netherlands also did well. All the divisions together combined for an operational result of 628 million euros, 21 percent more than a year ago.

Achmea said that the positive results from the damage sector are also due to increased turnover growth and digitalization. The insurer has a "stormbot" system that now helps with handling damage reports.

"In many standard situations, we let the stormbot handle the reports," Lamie explained. "This way, we can focus more on personal contact with clients that need it."