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Daily Insurance Industry News
Wednesday 22nd of May 2019
December 10, 2009

Insurers face record fire claims

by Gill Montia

Story link: Insurers face record fire claims

The Association of British Insurers (ABI) has reported that the cost of fire damage in the UK has risen to record levels.

During the first half of the year, insurers paid out £639 million, or £3.6 million a day, for damage caused by fires.

The figure is at its highest ever for a comparable period and follows on from the record high £1.3 billion paid out in UK fire losses for 2008.

In addition, between 2002 and 2008 the cost of the average fire claim for both commercial and domestic fires doubled, to £21,000 and £8,000 respectively.

In a new report the entitled “Tackling Fire: A call for Action” the body points out that arson, which tends to increase during a recession, accounts for half of all commercial fires.

Socially deprived areas and schools are especially vulnerable; with twenty schools a week currently suffering an arson attack.

The study also reveals that an increase in the number of open plan buildings and out of town developments are among factors contributing to soaring fire costs.

The ABI’s director general, Nick Starling, comments: “While the numbers of fires may have been falling, the increase in large-scale fires is increasingly putting lives at risk, and puts more pressure on businesses in these already difficult trading times.”

 

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