Wednesday 20 November 2019
Select a region

Storms likely to hit insurance premiums

Storms likely to hit insurance premiums

Thursday 20 February 2014

Storms likely to hit insurance premiums


Property insurance premiums are likely to rise if Jersey homes and businesses continue to be affected by adverse weather in the future – according to BWCI.

The UK insurance industry is facing costs of more than £426 million because of the damage caused by severe weather over Christmas and the New Year. BWCI’s actuaries help insurers to assess insurance risks and manage the financial exposures arising. They believe insurance firms will absorb Islanders’ short-term claims made as a result of the wettest January for centuries. But they may have to reappraise the risks of bad weather.

BWCI’s Head of Insurance Services Ian Morris said: “Continued adverse weather may cause insurers to review their view of the frequency of adverse weather events. They may review their view of the risks affecting the Channel Islands, or particular locations within the Channel Islands.

 “I believe that fundamental changes in premium rates in the Channel Islands are more likely to arise from wider considerations such as whether an increase in global temperatures is going to affect future risks, rather than the adverse weather we have at the moment.”

Mr Morris said that prior to the bad weather, claims at the end of 2013 were actually down nearly a quarter compared to the same nine months in 2012. He said: “The costs so far are not as high as in 2007 where flooding in Gloucestershire caused claims of up to £2 billion. We have yet to see how badly affected the UK is on this occasion.”

 

Sign up to newsletter

 

Comments

Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

Once your comment has been submitted, it won’t appear immediately. There is no need to submit it more than once. Comments are published at the discretion of Bailiwick Publishing, and will include your username.

There are no comments for this article.

To place a comment please login

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?