ABI says floods were the worst since 2007

Floods flooding in Yorkshire

Insurers are set to pay up to £500m flood damage to customers, according to the ABI.

The floods are the worst since 2007. RSA has already taken a £50m hit.

Nick Starling, ABI’s director of general insurance, said: “The widespread floods of this summer highlight how vital flood insurance is. During June alone insurers helped 68,000 customers.”

Barrie Cornes, analyst at Panmure Gordon, said the cost to RSA was far higher than the £8m and £15m he pencilled in, and blamed losses in commercial insurance as well as motor. He cut his annual earnings per share forecast by 14% to 11.98p.

 

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