Blackout: Insured losses could reach 300 million euros in Spain, lower in Portugal, says DBRS agency

The cast in black that affected all Spain and Portugal touched very seriously the Community of Madrid. A region turned into services, in which there are more than 10,000 restaurants, 65,000 retail shops and 38,000 wholesalers, was led to massive closures because the essential thing was missing: electricity to run the lights, the cash registers, the payment terminals with card, and the door closures. All this has had a serious economic cost, whic…

Losses insured in the blackout are expected to vary “between 100 and 300 million euros in Spain and a fraction of that in Portugal”, points out the financial rating agency DBRS.

Damages caused by the “blackout” of April 28 will have an impact on the insurance sector due to risks covered by insurance companies and individuals. The amount is not yet certain but the rating agency Morningstar DBRS comes up with an estimate.

The rating agency's analysis now expects even greater investments than those already planned so far for the energy transition.

Any insured losses could amount to between EUR 100 million and EUR 300 million, which could be the result of claims for compensation or material damage due to the power cut.

In a note sent today, DBRS indicates that the power failure that affected Portugal and Spain on Monday, starting at 11:30am, may generate an increase in claims related to residential, commercial, travel and business interruption insurance. “Although it is difficult to provide an estimate of the insured losses in the current situation, our initial expectation is that the insured losses will vary between 100 and 300 million euros in Spain and a fr…