Extreme weather in 2012 costs insurers £1bn

Record breaking levels rainfall in the UK during 2012 resulted in 486,000 insurance claims and cost £1.19 billion, confirms the Association of British Insurers (ABI)

New figures from the Association of British Insurers (ABI) highlight the impact on businesses of extreme weather events in 2012, which was the wettest year on record in England and Wales and second wettest in the UK.

In total, insurers handled 486,000 claims last year for flood and storm damage from homeowners, businesses and motorists. Settling these claims cost £1.19 billion, the highest annual figure since the £3 billion paid in 2007.

The ABI reports that insurers handled 47,000 business property claims following flood and storm damage in 2102, and paid out £373 million in compensation to affected companies.

The average claim payout for flood-damaged properties – both domestic and commercial – was £18,200. Another £40 million was also paid by UK insurers to cover business interruption, which helped firms continue trading while repairs were made to their damaged premises.