UK insurer pay outs hit its highest annual figure for five years in 2012

Press Release   •   Feb 15, 2013 12:30 GMT

Insurers paid out £1.19 billion for flood and storm damage in the UK in 2012 - the highest annual figure for five years, an insurance trade body has said.

Extreme weather conditions throughout 2012 led to insurers handling 486,000 claims for flood and storm damage from homeowners, businesses and motorists.

According to the ABI, the average claim payout for flood damaged properties, both domestic and commercial, was £18,200 and, in respect of storm damage, £1,300.

Last year was the second wettest on record in the UK, according to figures from the Met Office.

The total rainfall for the UK during 2012 was 1,330.7mm (52.4in), just 6.6mm short of the record set in 2000. However, it was the wettest on record in England and Wales.

Insurers expect bad weather to strike anytime, anywhere and last year highlighted the vital role insurance plays in helping communities recover from our increasingly volatile weather.

Flooding is the greatest natural threat facing the UK and the risk is rising so political consensus and commitment on investment in flood defences, sensible planning decisions and working with the insurance industry is essential.

In terms of the breakdown of the overall claims figure, insurers dealt with 411 000 claims for flood and storm damaged homes, paying out £690m to repair damage and replace ruined possessions.

The industry also handled 47,000 business property claims following flood and storm damage, paying out £373 million. In addition, firms paid out £40 million in business interruption payments to help firms continue trading while their premises were being repaired.

Meanwhile, insurer dealt with 27,000 claims for flood and storm damaged vehicles, paying out £84 million to motor insurance customers.

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