Foreign insurers to bear flood damage costs

As the first rough estimates for the total insurance payout needed to cover claims after the recent floods came in last week, concerns began to grow among insurers operating in the Czech Republic about the short-term and long-term effects on insurance and reinsurance prices. So far the second severe flood to hit the country in just five years is expected to result in some 130,000 claims and cost insurance companies some CKr20bn (US$630mn) although unofficial sources in the sector warned last week that the final tally could reach up to CKr25bn.