Insurance firms face £500m bill after the wettest June on record

INSURERS face a £500m bill to cover flood and storm damage in June, according to figures released yesterday.

The Association of British Insurers (ABI) says its members expect to pay out the equivalent of £17m a day after the month beat rainfall records, flooding buildings and damaging vehicles.

“During June alone insurers helped 68,000 customers hit by the floods and storms,” the ABI’s Nick Starling said.

Yesterday insurer RSA confirmed that it was expecting a £40m bill for flood damage in June, with an additional £10m for damage sustained so far in July. As a result analyst Barrie Cornes at Panmure Gordon cut the firm’s full-year earnings forecast by 14 per cent.

The government is currently negotiating a deal with the industry to ensure that affordable flood cover remains available to all. One proposal is a ‘flood levy’ on all household insurance premiums.