Storm Éowyn to cost over €240m in insurance claims

Mon, 07 Apr, 2025 - 01:00

Eoin English

The true cost of the devastating Storm Éowyn will be far greater than the €240m in insurance claims lodged so far, experts have predicted.

The economic impact will be felt for some time as businesses continue to struggle with the impact of the disruption it caused to their operations, the resultant loss of income, and mounting financial pressures in the wake of a tumultuous winter, global insurance brokers Gallagher in Ireland said.

The group have warned businesses to prepare for ‘storm clustering’ — where multiple storms hit in quick succession — suggesting that those that are not financially prepared could be forced to shut down permanently.

The warnings come after figures presented by Insurance Ireland to the Department of Finance at the end of February showed that about 27,000 insurance claims, totalling some €240m, have been lodged in the wake of Storm Éowyn.

Almost 7,400 commercial claims account for the bulk of claims, totalling almost €122m, with around 18,500 household claims accounting for almost €111.5m. The remainder are motor claims.

Storm Éowyn, one of the most destructive storms in recent memory, struck between January 23 and 25 — with record-breaking winds and torrential rain causing widespread devastation and damaging critical infrastructure, leaving 768,000 homes, schools, farms, and businesses without power, some for almost three weeks.

Among the high profile incidents was the collapse of the multi-million euro air dome in Connacht, the destruction of a wind turbine in Galway, and extensive damage to the Galway Clinic, to an ice rink in Blanchardstown, and to St Joseph’s Church in Boyle.

It was swiftly followed by Storm Herminia, which brought further flooding, wind damage, and disruption across Ireland.

Vulnerable businesses

Laura Vickers, the managing director of commercial lines with Gallagher in Ireland, said recent storms have been a stark reminder of just how vulnerable Irish businesses are to extreme weather events.

“Beyond the physical damage, the financial impact of lost income and ongoing expenses can be crippling,” she said.

“Businesses that were unable to trade for weeks are now facing significant losses, and many were underinsured for business interruption.

“Without proper cover, some businesses may never fully recover.

“When businesses are forced to close temporarily — or permanently — it leads to job losses, supply chain breakdowns, and a decline in consumer spending.

“Entire industries, particularly small and medium-sized enterprises, could suffer if they are not adequately protected.”

She said many businesses focus on insuring their physical assets but underestimate the impact of business interruption.

“The reality is that even if a business escapes major structural damage, losing power or access to suppliers for an extended period can be just as crippling,” Ms Vickers said.

“If a company cannot trade, they are still incurring expenses — rent, payroll, supplier contracts — all while revenue dries up.

“Unfortunately, we’re seeing too many businesses in Ireland either underinsured or without business interruption cover at all.”

Retail, hospitality, construction, and manufacturing businesses are among those most exposed to such interruption, she suggested.

“Businesses need to understand that what happened with Éowyn is not a once-off,” she said. “Climate change is driving more frequent and severe storms and Met Éireann has already warned that we should expect more of these events.”

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