Flood Claim Could Exceed £1bn

by Gill Montia

Story link: Flood Claim Could Exceed £1bn

The recent flooding across the UK is expected to leave the insurance industry facing claims in excess of £1bn.

The Association of British Insurers (ABI) estimates that 27,000 homes and 5,000 businesses have sustained damage, and with further heavy rainfall occurring, the numbers could yet rise.

Some insurers are redeploying staff and increasing staffing levels in call centres, but consumers are being warned that the level of claims could result in delays in processing.

Overall priority is being given to the most vulnerable claimants, such as the elderly and those with medical needs.

Both the ABI and the British Insurance Brokers’ Association (BIBA) are calling on the Government to increase its spending on flood defences to at least £750 million per year.

BIBA Chief Executive, Eric Galbraith, is insistent that the Government must make the necessary investment to protect people, homes and businesses, whilst pointing out that it is incumbent on property owners and business to ensure that risks have been properly assessed and that adequate cover is in place.

Meanwhile, Confused.com, the price comparison website, believes that insurers will have little choice but to increase premiums over the coming year.