DAILY NEWS Dec 6, 2012 1:11 PM - 0 comments

U.K. flood losses reach five year high after heavy rain in November

TEXT SIZE bigger text smaller text

Torrential rainfall in November has pushed 2012 into becoming the costliest flood year in the United Kingdom in five years, Aon Benfield’s global catastrophe recap for the month suggests.

U.K. floodsAt least four people were killed and 1,100 homes damaged as a result of the heavy rains in the U.K. during November, the report notes.

Read more: U.K. floods could cause premiums for certain areas to skyrocket: PwC

The recap also notes that PricewaterhouseCoopers has estimated that the floods were likely to cost insurers as much as $800 million.

That would raise the U.K.’s  flood insurance losses to around GBP $1.6 billion) for 2012, making it the costliest flood year since 2007, during which more than $4.8 billion in claims were processed, according to Aon Benfield.

In Europe, excessive rains prompted flooding along the Drava and Sava rivers in Slovenia, and in neighboring Croatia, damaging more than 4,500 structures and resulting in an economic loss estimated at $265 million.

“Europe traditionally suffers periods of flooding throughout the year, and since it is a highly insurable peril across a large proportion of the continent, insurance losses can be significant,” Steve Jakubowski, Aon Benfield’s president of Impact Forecasting noted in a statement.

Read more: UK flood risk set to rise significantly by 2035

“We have made advances in our understanding of the flood peril, particularly in the aftermath of the Thailand floods in 2011, and in response, Aon Benfield continues to develop and revise its modelling suite so insurers and reinsurers can better quantify their flood exposures."

November also saw severe weather across Australia’s New South Wales and Queensland. Hail caused significant damage, and flash flooding and high winds brought down trees and power lines, the report notes. Payouts are expected to reach at least $105 million, according to local insurers.

Major earthquakes also struck this November in Guatemala, Myanmar and Iran, while South America remained free of any major catastrophes during the month.


Photos: Flooding in the U.K. in November 2012 (Credit: U.K. Environment Agency)

Monitor These Topics

Horizontal ruler

Note: By submitting your comments you acknowledge that Canadian Underwriter has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

comments powered by Disqus