General Insurance Article - Winter storms – PwC comments on insurance impacts

 The winter storms have led to significant issues for certain parts of the UK. Mohammad Khan, insurance partner at PwC discusses the impact for insurance policies.

 "While it is still too early to put a potential cost on the damage caused, it is likely the UK storms will exacerbate the recent rises in household premiums in the regions where the storm hit most severely. For other parts of the UK, we would expect household premiums to continue to rise at the current rate - about 3% on average.

 “Business interruption claims have increased this year due to catastrophic claims in both the UK and abroad, as well as the UK riots. We would expect that this may lead to increases in premiums but companies should also look to the coverage of their business interruption policies especially if they are exposed to suppliers who are based abroad.

 “Although there has been a spike in motor insurance claims we wouldn't expect motor rates to rise significantly due to strong price competition and the fact that traditionally weather events have not affected motor rates significantly."