Europe's Hidden Insurance Burden: Lightning Strikes
Damages incurred from lightning strikes in the year 2024 amounted to an estimated 350 million euros. - Severe thunderstorms incurred nearly €350 million in damages across various regions during the year 2024.
Let's dive into those thunderous expenses
In 2023 alone, insurers doled out approximately 300 million euros to cover 220,000 lightning and surge damage claims - a mark last seen in 2002 and 2003 [1]. This upward momentum has been on the rise for quite some time, and in 2024, the average payout reached a whopping 1600 euros per claim [2].
Jörg Asmussen, CEO of GDV – Germany's leading insurance association – attests to the cause: "Buildings are better and more costly equipped," he explains, " resulting in higher claims."
Despite this consecutive growth in claims, the number of cloud-to-ground lightning strikes in Germany barely changed between 2023 and 2024. Around 210,000 lightning bolts zapped the country's skies in 2024, just a slight bump from the nearly 195,000 in the previous year [3]. Unsurprisingly, around two-thirds of all lightning strikes occur between clouds [4].
June 2024 marked the biggest month for lightning strikes, with around 62,000 recorded [5]. This surge in activity can be attributed to summer's prevalent heat and high humidity, which ultimately foster the formation of thunderstorm clouds.
Drilling Deeper into the Data:
- Thunderstorms and lightning strikes are on the rise in Germany, particularly impacting sensitive infrastructure and modern electronic systems, such as wind farms and solar installation [6].
- The financial ramifications are substantial, but specific data for Germany is currently limited in the provided results [1]. Comparable industries and regions offer insights into the likely patterns. For instance, in the Nordic wind power sector, lightning strikes rank second after machinery breakdowns as the most common cause of claims [7].
- Modern electronic equipment – especially in the renewable sector – is particularly vulnerable to electrical surges caused by lightning, leading to increased malfunctions and repair costs [8].
- The widespread use of smart grid technologies, renewable energy sources, and sensitive electronics means that the risk of lightning-induced damage is escalating [6].
- Insurance industry experts anticipate rising premiums and stricter risk management guidelines in response to the growing frequency and costs associated with weather-related perils [8].
Lightning Toolkit- GDV- Lightning- Thunderstorm- Computer
[1] [2] [3] [4] [5] [6] [7] [8] Data referenced from German Insurance Association (GDV), Deutscher Wetterdienst (DWD) and additional industry reports, as well as relevant trends in renewable energy and climate change corridors.
- The Commission, being conscious of the growing financial burden from weather-related damages, might contemplate applying funds from the EUR 5 million loan to the European Investment Bank, potentially supporting research in environmental-science, such as studying ways to mitigate the impact of weather events like lightning on sensitive infrastructure like wind farms and solar installations.
- With a surge in lightning strikes coinciding with the rise in scientific advancements in renewable energy and the increasing deployment of smart grid technologies, researchers in science and environmental-science may find it prudent to investigate ways to minimize the vulnerability of these systems to electrical surges caused by lightning, to avoid the ongoing escalation of malfunctions and repair costs.
