The storms that struck Denmark in October and December last year have already incurred estimated compensation costs for the society amounting to approximately 500 million Danish kroner (around 74 million USD). Susanne Aamann, the director at the Competition and Consumer Authority (Konkurrence- og Forbrugerstyrelsen), states that the expected compensation could ultimately reach up to 1.1 billion Danish kroner (about 163 million USD). This estimate is based on declarations from the Natural Damage Council (Naturskaderådet) and the extensive damages caused by the storms.

A comparison with previous years’ storms highlights the severity of the recent events. For example, the storm Bodil, which occurred in 2013, resulted in compensation costs of nearly 1 billion Danish kroner, a record that is now likely to be surpassed. The two storms in 2022, one in October and another around Christmas (storm Pia), affected wide areas of Denmark, prompting the Natural Damage Council to declare a storm surge.

Residents in the affected areas have the opportunity to get their damages covered through the storm surge arrangement, a government-funded program that is partially financed through the fire insurance policies of Danish citizens. A storm surge is defined as an extremely high water level, with specific thresholds outlined in tide statistics produced by the Coastal Authority (Kystdirektoratet). The latest statistics from July have altered some of the criteria, potentially making it more challenging to obtain compensation in certain regions in the future.

Minister of Business Morten Bødskov reassured the public in October that the storm surge program has around 1.1 billion Danish kroner at its disposal and is supported by a government guarantee that can be utilized if the funds are insufficient. He also mentioned that the government is evaluating the program in collaboration with the political parties in the Parliament (Folketinget).