Insurers facing worst flood damage bills since 2007

clock

British insurers are expected to face the worst flood damage bills since 2007, PricewaterhouseCoopers (Pwc) has warned.

The forecast - which was made even before this weekend's heavy flooding - was also predicted to result in the associated costs being passed onto customers. 

Mohammad Khan, insurance partners, PwC, said: "Using summer flood damage as a proxy to the recent flooding across the UK, we estimate the cost to industry in 2012 to now add up to around £1bn."

PwC said the period between April and June was the wettest since records began, with insurance losses form the flooding estimated at £500m.

Meanwhile, Domenico Del Re, PwC's head of catastrophe management, also flagged up the uncertainty surrounding the imminent expiration of the Statement of Principles in June next year.

"Given the recent weather and impact of flooding in 2012 overall, homeowners exposed to flood risk might potentially find it unaffordable to purchase flood protection next summer," he said.

"Who will step in to insure homeowners exposed to flood risk, remains a key question for insurers and customers alike. For example, will the cost be transferred to the taxpayer, similar to the US' federal flood insurance scheme?"

More on Insurer

Healix launches on-demand medical and security service

Healix launches on-demand medical and security service

Tailored for specific time-sensitive needs

Jaskeet Briah
clock 29 January 2025 • 1 min read
MetLife UK paid 27,000 claims in 2024

MetLife UK paid 27,000 claims in 2024

£27 million paid out

Cameron Roberts
clock 23 January 2025 • 1 min read
Cirencester Friendly partners with Medi2data

Cirencester Friendly partners with Medi2data

Underwriting and claims partnership

Jaskeet Briah
clock 23 January 2025 • 1 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read