Jari storm impacts forest damage in Finland but insurance claims remain moderate

The recent Jari storm swept across Finland, but early assessments indicate that insurance claims are unlikely to reach record levels. Most of the economic impact stems from forest damage, with Anu Kemppainen, an expert on forest insurance, stating that the storm will not lead to exceptionally high compensation this year.

Kemppainen notes that similar storms have occurred frequently in recent years, and there is no indication that storms are becoming a growing factor in insurance claims. Despite the widespread and severe conditions caused by the storm, she believes the damages will remain relatively modest. This is mainly because Jari did not bring with it the intense downdrafts typically seen during summer storms. Another fortunate aspect was that strong winds prevented snow accumulation on branches, reducing the load and potential damage.

As for transportation impacts, claims related to traffic incidents have begun to surface. The number of reported damages has surged by 70% compared to a week prior, with hundreds of claims filed, including accidents involving cars. Finnish rail operator VR has noted over a thousand claims related to train delays. However, the company’s director, Piia Tyynilä, believes the storm will not significantly increase annual compensation for delays.

Kemppainen estimates that 80% of the damages from Jari will be from forest destruction. In past years, compensation for forest damage has sharply decreased, falling from over €32 million a decade ago to below €9 million last year. She anticipates no turnaround from this trend, but conversely, compensation claims for insect damage have been steadily rising, surpassing those for storm damage last year. Factors such as dry early summers and extended growing seasons contribute to an increase in insect populations and related damages.