For the majority of 2015 insurance losses were modest from an adverse weather perspective. However in December 2015 Storm Desmond brought record rainfall and significant flooding to parts of the UK. The residential market has seen the initial effects from Storm Desmond:
- 3,000 families in alternative accommodation
- Emergency payouts of £24 million
- Aprox. 9,000 residential and home owner claims
- 8,300 loss adjuster visits
This coupled with attritional losses and the occasional large fire, will continue to erode insurer’s underwriting profit. Zurich has already predicted UK storm-related losses of £194 million for its general insurance business for the fourth quarter of 2015.
However cases that are distressed will continue to suffer appropriate higher rates even in the current soft market. These distressed accounts will succeed in negating any proposed increases by having a robust risk management strategy. Not just the traditional type, but in new methodology including leak defection, thermographic testing as well as the utilization of innovative theft protection systems such as smartwaterTM and Leaksafe.
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For further information, please contact Shaun Grainger, Associate, JLT Specialty on +44(0) 7917 240 509