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British flooding

24 July 2007
Written by: webmaster Posted under General

Total cost of payments of the British insurance companies, connected with flooding in the Great Britain in June-July, 2007, can make more than 3 billion pounds sterling. Such information has been represented in the message of international rating agency Fitch Ratings.
The estimation of total payments of the British insurance sector on damage from flooding by Fitch’s analysts is based on estimation of Association of the British insurers (ABI), according to which the general requirements on insurance payments, suffered from act of nature will exceed 2 billion pounds sterling.
Data about a flood damage, connected with damage of cars and a suspension of work of the enterprises and own analysis in which last data on the damage caused by a high water level kept now in flooded zones have been also added to these estimations.
However in opinion of Fitch’s analysts, insurance payments will render the limited influence on change of credit ratings of the leading insurance companies. Despite of significant scale of recent flooding in Britain, this act of nature is not catastrophic for insurance capitals though it, certainly, will affect negatively profits of the companies.
Besides in opinion of analysts, flooding in Britain can cause increase in rates of insurance payments at property and the real estate in the regions, which have been captured by act of nature, and it will also definitely affect a conjuncture of the insurance market in Britain as a whole. As experts believe, in case of if the state will not accept additional measures on protection against flooding and will not allocate significant budgetary investments for this purpose, the British insurance companies in the future can reconsider the order of insurance upon flooding in the adverse party for clients.




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