Insurers set to take £1.1bn hit after flooding

THE WETTEST winter on record and flood and storm damage caused as a result is likely to cost the insurance industry £1.1bn, according to the Association of British Insurers (ABI).

A total of 17,500 claims were received in the period between 23 December 2013 and 28 February this year; 9,000 from homeowners, 5,400 for flooded vehicles and 3,100 from businesses affected by the weather.

Director general of the ABI Otto Thoresen said despite the number of claims, the overall cost to insurers is still much less than the £3bn bill for storms in 2007: “The flood waters may have mostly receded, but for many the distress of being flooded remains raw. Insurers and loss adjusters are playing a crucial role in the recovery process.”

He continued: “A badly flooded property can take months to become habitable again, so insurers continue working around the clock to ensure that the drying out process is completed as quickly and as safely as possible.”

The cost of flooding alone amounts to £446m, the ABI said. £27m has already been paid out.

Earlier this month, ratings agency Fitch said that the total cost of the recent flooding could reach £1.3bn for the insurance industry.