Just One UK Insurer Anticipating £140 Million In Claims From Back-To-Back Storms
Direct Line, one of Britain’s biggest insurers, will take a hit of up to £140m from the three storms that flooded parts of Britain in recent weeks.
The company put the total cost of clients’ claims in its home and commercial divisions at between £110m and £140m. This was less than analysts had feared, and the company’s shares rose 2% to 369.6p.
The news came as experts at PricewaterhouseCoopers warned that households caught up in the recent flooding could see their insurance premiums rise by up to 15% – while others who have been flooded in the past but not this winter could see their premiums fall thanks to the new Flood Re scheme.
Direct Line expects home claims from Storms Desmond, Eva and Frank to total £80-100m, exceeding the normal annual level of severe weather-related claims of £80m. Claims in its commercial unit are estimated at £30-£40m. The storms battered large parts of the north including Cumbria, Yorkshire and southern Scotland, and left many people homeless or without power.
EDIT
http://www.theguardian.com/business/2016/jan/12/uk-storms-direct-line-expects-insurance-claims-to-reach-up-to-140m-pounds
