10-07-2007
Insurance business wakes up to flood issues
The recent floods across the UK are a "wake-up call" for the insurance business, according to German insurer Allianz.
Furthermore, the firm suggests that it is still unclear as to how high the cost of commercial insurance will rise as a result of the natural disaster, the Financial Times reports.
Some flood regions could become pricier for insurance or even unavailable altogether, the group states.
"Flood in the UK we believe is right up there as a major world-class risk," Clement Booth, a member of the Allianz management board and chairman of Allianz UK, told the newspaper.
"I would say it will have a meaningful effect on flood-prone pricing. It will have a meaningful effect on anything considered to be in that category," he added.
The Federation of Small Businesses recently announced that it has set aside a loan fund of £500,000 to help companies that have been affected by the UK floods.
Compare impartial business insurance quotes online in minutes