Insurance Companies to faces debts up to £1 billion

Friday 28th June 2007

The insurance industry are expecting to shell out up to £1 billion I n claims after the recent flash flooding which has hit various parts of the British Isles. The Association of British Insurers estimates that over 27,000 homes as well as 5,000 businesses have been affected by the adverse weather conditions.

The ABI also estimates that over 8,600 claims for flood damage were as a result of just one day alone as torrential rain smacked down upon areas up and down the country. The recent weather is expected to continue leading to fear that costs may continue to rise with insurers increasing the numbers of personnel on call to deal with the high level of claims that are expected to be received.

It is also feared that the scale of claims will push up premiums as well as lead to delays in the processing of claims.