Cost of GI likely to rise

Ryan Bembridge

January 26, 2016

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.”

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