LONDON Feb 28 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
pounds ($2.50 billion), according to consultants at Deloitte.
The consultancy had estimated insured losses from winter
storms in the UK since the autumn would be up to 1 billion
pounds 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 pound mark and is
heading towards 1.5 billion pounds," said James Rakow, insurance
partner at Deloitte.
Rakow added 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.
Insurer RSA said on Thursday it expects to take a
45-60 million pound hit from claims related to flooding in the
UK while Direct Line forecast a 70-90 million pounds
cost from claims between the start of the year and February 22.