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Commercial insurance rates to rise for flood-affected U.K. accounts

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Companies affected by recent flooding in the United Kingdom will see significant increases in their commercial insurance rates, even though rates for U.K. buyers overall will fall in 2016 compared with 2015, according to PricewaterhouseCoopers L.L.P.

“Terms and conditions are becoming looser, so even if insurers can retain premium rates, businesses will be able to get advantageous terms and conditions (more cover, lower deductibles) for the same premium,” Mohammad Khan, U.K. general insurance leader at PwC in London, said Tuesday in a research note on the 2016 outlook for insurance rates.

“The only exception to this will be for properties that have been affected by the December 2015 and January 2016 floods,” he said.

Widespread flooding hit parts of the United Kingdom after a series of winter storms.

“Commercial property insurance for those properties will rise significantly, by more than 100% for some businesses,” Mr. Khan said.

“Business interruption insurance (rates) for those properties will also rise significantly,” he added.