Weather-related damage in December 2013 and in the first eight weeks of this year could cost the insurance industry up to £500m.
That is the view of insurance company PWC.
Insurance partner Mohammad Khan said: “We have revised our total cost estimates upwards, taking into account the January weather. Our expectations are that the insurance industry will have up to £500m of costs from the January and December weather and the economic damage will be £630m.”
Khan said it was too early to determine if the weather would impact insurer results for next year.
PWC insurance catastrophe expert Dom Del Re added: “Claims arising from business interruption could be a significant driver of the overall insured loss. Home and business owners who have planned for flooding will be better equipped to deal with the disruption and damage.
“Policyholders continually impacted by flooding – even those not in traditional flood plains – should consider taking remedial action on their properties to help mitigate and prevent damage caused by flooding.”
- Based on weather forecasts, further flash flooding is expected and the cost estimates are likely to rise.