ABI Estimates UK Flood Losses at $6.1 Billion; Supports Climate Change Bill

August 9, 2007

The Association of British Insurers has released new figures on the cost of the June and July floods, and the number of claims received.

The ABI broke down the figures as follows:
— Total cost: approaching £3 billion ($6.1 billion)
— Total number of claims: almost 60,000
— Total domestic claims: 45,000
— Total commercial claims: 14,500
— Cost of June floods: £1.5 billion ($3.05 billion)
— June domestic claims: 27,500 (average cost £30,000)-[$61,000]
— June commercial claims: 7,000 (average cost £90,000)-[$183,000]
— Cost of July floods: almost £1.5 billion ($3.05 billion)
— July domestic claims: 17,500 (average cost £40,000) – [$81,348]
— July commercial claims: 7,500 (average cost (£90,000) – [$183,000]

In a separate announcement Jane Milne, the ABI’s Head of Property Insurance, stressed the importance of the recently published report of the Parliamentary Joint Committee on the Climate Change Bill. “The floods of the last five weeks remind us of the devastating impact of severe weather on people’s lives and livelihoods,” she noted. “We must address the consequences, as well as the causes, of climate change.”

Milne called the Climate Change Bill “a unique opportunity to ensure sustained, Government-wide action to tackle the increased incidence of flooding, storm damage, subsidence and heat waves that climate change will bring.”

She also said the ABI “thoroughly” endorses “the Joint Committee’s recommendations that there should be regular reports to Parliament on the climate risks we face and the measures Government and local authorities have in hand to deal with them.”

Source: ABI – www.abi.org.uk

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