However, based on research for Deloitte’s annual household insurance seminar, household insurers are likely to impose price rises of between 5% and 10% in 2012, despite making an underwriting profit in 2011 after a loss-making 2010.
James Rakow, insurance partner at Deloitte explained the insurance industry was hit hard by the extremely cold weather in December 2010 and the additional freeze claims wiped out the profits insurers expected to make on household policies.
“The outturn for 2012 will largely be determined by the weather and the storms that hit Britain in the first few days of January act as a reminder of the huge losses that natural perils such as storms and floods can produce,” he said.
Meanwhile, last week’s high winds and heavy rain were responsible for a record number of insurance claims for Select & Protect.
It reported that 197 new claims were notified in just one day last week, up from the highest single December day of 67 claims.
Bruce Reid, managing director of Select & Protect said: “Your home insurance is only as good as your ability to pay claims or get people out to fix roofs or move fallen trees.”
