INSURERS RAISE ESTIMATES OF FLOOD DAMAGE COSTS
Insured
losses are now expected to top £1.2billion after experts raised their
previous estimates as the widespread flooding continues.
PwC had earlier predicted that the insured losses from December's storms would cost between £700million and £1billion.
However, as Storm Frank battered much of the country today, PwC upgraded its estimate to between £900million and £1.2billion.
'The
storms this time have generated a far greater proportion of non-insured
losses compared to the total economic damage,' said Mohammad Khan,
general insurance leader at PwC.
'Many
of the smaller and family-run businesses that have been impacted by Eva
and Desmond will not have commercial insurance in place due to the
impact of the recession and lower business volumes in recent years.'
A
government-backed scheme to make flood insurance affordable is due to
launch in Apri but the scheme, Flood Re, does not cover small
businesses.
Consultancy KPMG has put the potential economic losses at more than £5.8billion , including £2billion alone for flood defences.
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