Flood damage 'not yet affecting' motor insurance premiums

Posted :02-10-2007

June's severe flooding did not have a significant effect on motor insurance premiums in the direct market during the third quarter of this year, according to Experian.

Managing director of Experian's insurance service division David Murby attributed June's dip in broker prices to new, competitively-priced products being launched on the market.

"However, the subsequent increase in broker premiums is not a result of the floods that month," he asserted.

"The broker market tends to react slower than the direct market to events such as flooding, so the increases we are seeing now are highly likely to have been pending prior to the floods," he added.

Mr Murby concluded by stating that the "true impact" of the floods is likely to manifest itself in direct market motor insurance premiums over the coming months after providers have been able to assess the true impact of the adverse weather.

Consumers were recently advised by Defaqto to ensure that their homes are adequately covered should they be damaged by winter floods and storms.


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