Press Release

‘STORMY THURSDAY’ COULD BECOME MORE FREQUENT AND COSTLY SAYS THE ABI

18 January 2007

The high winds and heavy rain currently hitting much of the UK looks set to occur more frequently and cause more expensive damage in the future unless action is taken now, the ABI (Association of British Insurers) warned today.

While claims for damage following bad weather this winter have so far been what insurers expect, climate change looks set to increase the risk. Over half a million homes are now at high flood risk – up over 100% in the last five years. And rising sea levels could lead to many more properties being hit by coastal flooding.

Jane Milne, the ABI’s Head of Property Insurance, said:

“Insurers are geared up to dealing with storm damage claims as quickly and efficiently as possible. Over the last three years they have paid out on average £600 million a year to policyholders hit by storms.
“But action is needed now to protect customers from our increasingly erratic weather. Today’s storms back up our call for more investment in our flood defences. We need to look at more innovative building design, so that homes and businesses are more resistant to floods and high winds. Action taken now will help to keep property insurance widely available and affordable.”