UK insurance companies have now had chance to assess the costs of the floods that hit the country in late December 2013 through to early January 2014.
Yesterday, the Association of British Insurers (ABI) said that 174,000 insurance claims had been made as a result of the severe weather – flooding and storms – that occurred between 23 December and 8 January. The total cost of the insurance claims stands at £426m. The claims were for damage to homes, cars and businesses.
Of course, this isn’t to forget that many parts of England and Wales have suffered severe flooding since 8 January. Certainly further insurance claims can be expected and costs to insurers increase.
Aidan Kerr, the ABI’s assistant director said:
“Insurers are playing a crucial role in helping customers affected by the storms and floods recover,”
“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.”
“This was a traumatic event for those affected, and shows the importance of having adequate property insurance. The insurance industry is fully prepared to deal with the damage caused by bad weather like this.”
Severe weather had already hit the UK insurance industry after the St Jude’s storm during October. It is understood that the storm cost insurance companies around £130m.
Despite longer periods of severe weather late in 2013, UK insurance companies had an easier year than their German counterparts. Earlier this month, the German insurance industry body, GDV, announced that the flooding in June 2013 that affected much of Germany are likely to costs insurers around 1.3 billion euros, and that the severe weather that hit Germany overall in 2013 will cost 7 billion euros
Sources: BBC
