Swiss Re puts August hailstorm losses at CHF1.7 billion

CHF 1.7 billion in insured damage has put one late summer storm among Switzerland’s most costly recent weather events. On August 28, powerful winds and heavy hail swept across a densely populated belt of the country, striking homes, businesses and vehicles across Bern, Solothurn, Aargau, Zurich and Thurgau.

Swiss Re presented the estimate on October 13 at a reinsurance industry meeting in Baden-Baden, Germany. The figure covers insured losses linked to the storm and the surrounding extreme weather. It does not represent the full economic cost, which would also include uninsured damage, disruption and lost business.

The storm’s location was decisive. Leopold Camara, a senior Swiss Re executive, said the same event would probably have caused far greater losses if it had hit Zurich directly. Switzerland’s population, property and economic activity are concentrated in relatively compact urban and suburban areas, leaving large numbers of assets exposed when severe weather crosses a built-up region.

The estimate gives insurers, local authorities and property owners a clear measure of the financial risk carried by increasingly volatile weather. It also places vehicle protection and early warning systems at the centre of the response.

Five centimetre hailstones struck parts of Switzerland, combining with strong gusts and intense precipitation to damage a wide range of property. The hardest hit areas included Bern, Solothurn, Aargau, Zurich and Thurgau, according to Swiss Re’s assessment.

The storm moved through a region where homes, commercial buildings, roads and parked vehicles sit close together. That density helped turn a short period of severe weather into a large insurance event. Hail can break roof tiles, crack windows, dent façades and damage agricultural equipment within minutes. Wind adds another layer of exposure by tearing at roofs, signs and temporary structures.

Swiss Re’s estimate also illustrates why the same weather system can produce sharply different results depending on where it lands. A storm crossing open countryside may cause serious agricultural losses, while one over a dense urban corridor can affect thousands of households and businesses at once.

The cantonal pattern matters for claims handling and prevention. Insurers must process damage across several regions, while municipalities face pressure to clear roads, coordinate repairs and keep essential services operating. For residents, the first visible sign of the storm may be a damaged roof or shattered skylight, but the total bill accumulates across thousands of individual claims.

Around CHF 800 million of the losses came from motor vehicles, making cars the single most visible part of the storm’s financial impact. Hail can dent body panels, crack windscreens and damage lights across entire car parks, dealerships and residential streets in a matter of minutes.

Swiss Re said vehicle damage is becoming an increasingly important feature of extreme weather events. One storm can affect many thousands of cars, creating a concentrated wave of claims for insurers, repair shops and vehicle owners. The pattern has also appeared across the border, where hailstorms in northern Italy during July and August caused extensive damage to cars.

Prevention measures are relatively practical. Swiss Re pointed to earlier warnings and better access to covered parking as ways to reduce losses. Drivers who receive timely alerts may be able to move vehicles into garages, underground car parks or other sheltered spaces. Municipalities and property managers can also consider how parking infrastructure could serve as protection during severe storms.

The scale of the vehicle bill highlights a broader insurance challenge. Modern cars are valuable, densely concentrated assets, and their exposure is shaped by everyday choices about where people live, work and park. Weather warnings therefore need to reach drivers quickly and in a form they can act on.