British insurers sustained very few storms in the first half of 2015. But the month of December was not as mild and merciful with three successive storms hitting the country, triggering important floods. Known locally under the name of Desmond, Eva and Frank, these events are going to impact insurers’ results.
According to A.M. Best, Desmond and Eva have, alone, triggered insured losses estimated between 900 million and 1.5 billion GBP (1.3 and 2.2 billion USD). The fire class of business will be the hardest-hit even though the motor business sustained considerable loss. Despite the damage caused by those events, no tariff adjustment is expected.
Insurers have managed to take full advantage of reinsurance, putting in place low tariffs. The event clause has, for instance, been extended to 504 hours (21 days). Consequently, excess of loss reinsurance programs will play out more easily.