THE INSURANCE industry looks set to pay out millions of pounds worth of claims after the country was hit by bad weather and flooding over the Christmas period.
Figures released by the Association of British Insurers (ABI) put the estimated insured cost of the damage at £426m. The figure is the result of 174,000 claims between 23 December 2013 and 8 January this year. Aidan Kerr, assistant director at the ABI, said the industry is “fully prepared to deal with the damage,” adding: “Together with loss adjusters, insurers reacted quickly to help flood victims get through Christmas. Insurers will continue to work closely with customers to ensure the repair process is completed as soon as possible.” The industry is braced for more bad weather in the coming weeks, which could push the final total up higher.
Mohammad Khan, insurance partner at PwC warned: “The estimate from the ABI highlights the continuing potential for flooding. We would expect weather costs to insurers to increase during January and February.”
A spokesman for Direct Line told City A.M. that the costs had not been as high as first feared, adding that there were no surprises in store ahead of its results, which are due to be published shortly.