U.K. floods could cost insurers up to $2.49 billion
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(Reuters) — The bill sent to insurers from storms bringing hurricane-strength winds and widespread flooding to parts of Britain since December could reach £1.5 billion ($2.49 billion), according to consultants at Deloitte L.L.P.
The consultancy had estimated insured losses from winter storms in the U.K. since the autumn would be up to £1 billion ($1.66 billion) but have upgraded their view after the bad weather continued into February.
"Our view on the cost of weather claims from both the storms and the floods from December through to the end of February is that it has now gone through the £1 billion mark and is heading toward £1.5 billion," said James Rakow, insurance partner at Deloitte.
Mr. Rakow added that the bulk of the cost will be attributed to damage to commercial and domestic property since the start of the year on account of storms in mid-February and floodwaters reaching the affluent outskirts of London.
Earlier in February, the British government summoned senior executives from top insurers to brief ministers on how they were addressing the damage caused by flooding.
RSA Insurance Group P.L.C. on Thursday said it expects to take a £45 million to £60 million ($74.8 million to $99.7 million) hit from claims related to flooding in the U.K., while Direct Line forecast a £70 million to £90 million ($116.4 million to $149.6 million) cost from claims between the start of the year and Feb. 22.
