Claims come flooding in

Once again the UK was brought to a near-standstill by a few flurries of snow and temperatures that Russians would describe as a heatwave; the transport system performed typically badly.

And commuters were not the only ones to be less than pleased: insurers are estimated to be facing claims costs of £100m. Interestingly, risk analysis data supplier ISL director Mark Harrison says that freeze claims are often overlooked by underwriters, as they focus on the likes of subsidence and flood.

And this month flooding has also been keeping insurers busy, especially as the moratorium on flood cover expired and the ABI statement of principles came into effect.

The insurance cost of the recent flood damage is a mere trickle compared to the 2000 floods - only £70m.

Nevertheless, homeowners unfortunate enough to own houses in floodplains have had their new year high spirits dampened.

Not only did they see prized possessions float away, they also risked defaulting on their mortgages if they were unable to secure flood cover on their properties.

After the new year hangovers had cleared, brokers were faced with a further headache: the enticing FSA consultation paper on insurance mediation. It seems that few brokers had been tempted away from the Queen's speech and roast turkey to read this mammoth tome, prompting Biba to email its members encouraging them to do their homework. Brokers, stand in the corner.

Are insurers losing their nerve? Aon UK chief executive Dennis Mahoney seems to think so, as he warned of a £111bn "black hole" that had opened up following massive asset depletion and which was causing underwriters to cut new business. Mahoney said that this retreat from risk could threaten the industry - after all, underwriters are meant to be risk-takers, he pointed out.

The American civil litigation machine is being cranked up again and UK insurers are nervously watching for the results.

This time the subject of US litigation frenzy is the must-have teenage fashion accessory and business tool, the mobile phone. Billion-dollar claims have been launched against companies such as Vodafone, alleging a causal link between mobile phone use and ill health.

The medical evidence has yet to be published, but insurers and phone operators in the UK must be wary of sitting back and doing nothing