Claims threaten to ‘seriously dent’ insurers’ profits

The floods and storms experienced in recent months could “seriously dent” insurers’ profits and push property rates up, accounting firm Deloitte warns.

The UK continues to be battered by storms, causing severe flooding.

The ABI estimates that the flooding that occurred between 23 December and 8 January alone will cost insurers £426m.

Deloitte insurance partner James Rakow said: “The flood and storms that we have witnessed since the St Jude storm in October last year threaten to seriously dent the profits made by insurers for the year as a whole, potentially forcing many to recoup costs by raising property insurance premiums.”

Rakow noted that on average, flood claims cost between £30,000 and £40,000, and 1,300 properties were flooded in the run-up to the New Year.