General insurance providers will raise home insurance premiums in 2016 to reflect the risk of disasters like flooding, Legal & General insurance managing director Mark Holweger has warned.
Holweger said: “The flooding over Christmas was a major event that will affect pricing in 2016.
“It highlights a need for price increases – what we need is sustainable pricing.”
Over Christmas people living in Lancashire, Cumbria, Scotland and Yorkshire were devastated by Storm Desmond – and today the Environmental Agency has issued a warning that the same regions could be hit by more flooding later this week when the end of the American Storm Jonas hits the UK.
Holweger added that a number of providers had got pricing in 2015 wrong and said the proof will be in the pudding when insurers release their annual profit results for 2015.
He said: “This is a sensible industry but every now and again providers get it wrong.”