UK floods cost insurers billions
British floods of the past two months are expected to cost insurers more than £3 billion ($7.01 billion), according to Fitch Ratings.
The revised claims cost is more than double an estimate by the Association of British Insurers (ABI) earlier this month of £1.5 billion ($3.5 billion). Last week the association revised their estimate to more than £2.5 billion ($5.9 billion) in claims.
Fitch says insurers are unlikely to have their financial ratings cut, despite the cost of claims.
Floods swept through the UK in June and July, with Yorkshire, Worcestershire, Gloucestershire, Warwickshire and Herefordshire the worst affected areas.
“Despite the severity of recent flooding and wide area affected, it is not a catastrophe of the magnitude that could impair insurers’ capital strength, although it is likely to have a negative effect on earnings,” Fitch said.
ABI General Insurance and Health Director Nick Starling says insurers are working overtime to respond to the large number of claims.
“Insurers have emergency plans in place to deal with these floods, and will pull out all the stops to help policyholders. Their main priority is to arrange emergency repairs, get people into temporary accommodation where needed and visit properties as soon as they can.”
The revised claims cost is more than double an estimate by the Association of British Insurers (ABI) earlier this month of £1.5 billion ($3.5 billion). Last week the association revised their estimate to more than £2.5 billion ($5.9 billion) in claims.
Fitch says insurers are unlikely to have their financial ratings cut, despite the cost of claims.
Floods swept through the UK in June and July, with Yorkshire, Worcestershire, Gloucestershire, Warwickshire and Herefordshire the worst affected areas.
“Despite the severity of recent flooding and wide area affected, it is not a catastrophe of the magnitude that could impair insurers’ capital strength, although it is likely to have a negative effect on earnings,” Fitch said.
ABI General Insurance and Health Director Nick Starling says insurers are working overtime to respond to the large number of claims.
“Insurers have emergency plans in place to deal with these floods, and will pull out all the stops to help policyholders. Their main priority is to arrange emergency repairs, get people into temporary accommodation where needed and visit properties as soon as they can.”