The Insurance Association of Malta has said it is still "too early" to determine the extent of insurance claims arising from Storm Harry, saying that storm-related losses often take weeks to assess, and depend heavily on policy-specific terms, exclusions and risk exposure.

Director general of IAM Adrian Galea told The Malta Independent on Sunday that it is too early to draw conclusions on the severity of Storm Harry, and the volume of insurance claims that may arise from it, noting that such assessments require time to mature.

"It is certainly too early to carry out some form of analysis and comparisons or reach any conclusions about the storm that hit the Maltese Islands between Monday and Tuesday, less than 48 hours ago," Galea said, replying on Thursday.

He recalled that past storms, including the strong winds of February 2023, did not necessarily result in extraordinary claims.

"From experience, even though the storm may be severe, as was the case with the strong winds in February 2023, the claims met by local insurance companies were not extraordinary due to the direction of the winds that battered the islands," Galea said.

He added that there is the need to give this matter some time to mature further, before one can draw any conclusions about the severity of the storm and the claims for compensation that arise.

Galea said that damage caused by strong winds, heavy rainfall, flooding and wave action is generally covered under both residential and commercial insurance policies.

"That said, one must consider specific exclusions or excesses that may be inserted/applicable to individual policies, often reflecting their respective increased exposure to risk, generally based on location/track record," Galea said.

Properties located along coastal roads and promenades are also subject to similar considerations.

"One must consider the storm damage/flood specific terms and the possible exclusions or excesses that may be inserted or applicable to such properties, often due to their respective increased exposure to risk," he said.

"Normally, coastal flooding would be considered as a consequence of the storm or flood, and the related considerations (terms, conditions and possible limitations) would apply," Galea said.

Galea continued that agriculture-related risks are highly specialised/niche in insurance and are not generally available over the counter.

"The few insurance companies who may write this type of insurance business generally tailor their policies to the individual requests and their assessment of the specific risk/circumstances," Galea said.

He explained that some policies may cover infrastructure while excluding crops, and that "excesses are not uncommon for storm-related damages in these specialised types of policies".

Similarly, insurance for commercial fishing vessels is also a specialised segment.

Galea said that the extent of the cover that is provided for moored vehicles is indeed dependant on the harbour infrastructure.

Claims' process

Galea said that policyholders should follow standard claims' procedures.

"Policyholders should take all reasonable steps to prevent or mitigate further losses; they should take pictures and videos of the losses sustained, and inform their insurance company immediately, who would normally appoint a loss assessor to investigate the claim," Galea said.

He said that this is quite a long process, which is why it is too early to determine the extent of damage and claims caused by such a storm.

Claimants are also expected to be able to substantiate the losses incurred, including the amount claimed and the previously mentioned pictures and videos, supplemented eventually with copies of receipts that would assist the claims' process.

He was asked whether storms of this intensity are considered "Act of God" under Maltese insurance policies, and if that classification affects whether claims are accepted or rejected.

Galea noted that the term "Act of God" is largely outdated in modern insurance policies.

"'Act of God' is a generally outdated term that is rarely used in modern insurance policies, which would instead list the perils that are covered or, if 'Accidental Damage' based, would list what is not covered with anything else being considered as part of the insurance cover provided," Galea said.

He also dismissed the notion that Storm Harry reflected an increasing frequency of severe storms.

"This week's storm does not implicate an increased frequency of severe storms. It is like ones that typically take place every few years. The recent similar storms that took place in 2023 and 2019 come to mind," Galea said.

When asked what advice the Insurance Association of Malta has for those affected by Storm Harry, Galea referred to the guidance already provided on the best practice for claimants on claim procedures and documentation.

Malta was battered by Storm Harry between Monday and early Wednesday, with strong winds and rough seas disrupting services and causing havoc, particularly in the southern part of the island.

The storm

Between Monday and midday on Wednesday, Malta's Disciplined Forces responded to just under 700 incidents following severe weather brought by Storm Harry, the government said. The storm affected the islands on Monday and Tuesday, with rough seas continuing into Wednesday and winds reaching Force 9.

During this time, the Civil Protection Department (CPD) handled 502 incidents. These included fallen trees, unstable billboards, electrical hazards, car and waste fires, fuel spills, and other storm-related dangers. The Police Force assisted in 86 cases, such as people trapped in vehicles, cars swept away by floodwaters, and hazards caused by hanging objects, furniture, cables, construction material, balconies, and broken glass.

The Armed Forces of Malta supported the CPD in several operations and carried out maritime interventions, mainly involving incidents at sea, in addition to assisting in four other cases. LESA responded to 74 road collision incidents.

Following the storm, several government entities were employed to restore conditions to normal. In Parliament, Minister for Home Affairs, Security and Employment Byron Camilleri thanked all personnel involved in the response and expressed solidarity with families and businesses affected by the storm.

On Wednesday morning, permanent secretaries from across government met to discuss the storm's aftermath. The forum, chaired by the head of the Public Service, Tony Sultana, identified the immediate priority as removing hazards and carrying out clean-up operations nationwide. Once this phase is completed, the government will assess damage and provide support through existing assistance schemes.

The government also announced that the Public Works Department and Infrastructure Malta conducted interventions across multiple localities due to extensive infrastructural damage. Local councils were asked to report damage, particularly where safety, accessibility, or emergency issues exist. Reports are to be submitted via a form circulated by the Public Works Department or directly by phone if necessary.