UK Flood Update: ABI Estimates Claims Will Reach $2 Billion

July 2, 2007

The Association of British Insurers has released a preliminary claims estimate from the recent floods and storms, indicating that they are “expected to reach £1billion [$2 billion].” The ABI also warned: “This figure could rise if more properties are affected by further flooding.”

The estimate doubles the preliminary figures released by Risk Management Solutions (See IJ web site June 29).

The ABI’s Director General Stephen Haddrill noted that UK insurers are “working as hard as possible to reach customers and to visit properties early.” However, the damage is so widespread that a significant redeployment of company resources has been required to deal with the flood of claims. Haddrill said the insurance community was doing its utmost to help people, and urged understanding and patience, as companies “work through the backlog.

He also noted that the ABI is “keeping the Government informed of the situation and requesting meetings with the relevant members of the new Cabinet.”

The insurance companies “have put into place their crisis action plans, are re-deploying staff from around the country and are bringing in additional equipment from abroad,” the bulletin continued, adding that “clean up operations are underway where flood waters have receded.”

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