UK floods may spark motor insurance increase
21/08/2007
Car insurance is set to rise sharply because of the summer floods, warn experts.
Insurance companies face an estimated £3.3billion claims from customers whose homes were inundated.
This means they cannot afford to follow their usual practice of subsidising motor insurance with profits from property insurance.
As a result the cost of motor premiums must rise by as much as 10 per cent, says Europe's largest firm of non-life actuaries, EMB. its annual review shows that for every £100 insurers received in motor insurance premiums, they paid out £106.
Authorised and regulated by the Financial Services Authority
