Member Article

Insurance Premiums set to rise in 2012

Flood water and storms are the biggest concerns for home insurers in 2012, and the threat of adverse weather conditions could result in an increase in premiums by up to 10% over the next 12 months.

Analysis by business advisory firm Deloitte shows that the household insurance market will make an underwriting profit in 2011, which will come as good news after the losses witnessed in 2012. Despite this however, there is still likely to be an increase in prices of between 5% and 10% in 2012.

Commenting on the findings, Steve Williams Financial Services partner at Deloitte North East said: “In 2010 the insurance industry was hit hard by the extremely cold weather that Britain experienced in December that year, and the additional freeze claims wiped out the profits insurers expected to make on household policies.

“The weather in 2011 was more benign and it looks as though the industry is on target to declare an underwriting profit for 2011.”

The out turn for 2012 will now largely be determined by weather and storms which hit Britiain in the first few days of the month.

“This will act as a reminder of the huge losses that natural perils such as storms and floods can produce.” He added.

This was posted in Bdaily's Members' News section by Ruth Mitchell .