Pressure grows on insurers as flood bill mounts

The high winds and flooding that gripped the country earlier this month will cost insurers up to E100m (£61.1m), according to senior market analysts.

This follows a €30m (£18.3m) bill for flooding from burst pipes caused by sub-zero temperatures over the New Year.

The events sustain pressure on already rapidly rising home contents insurance premiums. According to market sources, premiums rose by 20% to 30% last year and will do so again this year. Now insurers fear that they will have to increase premiums substantially again next year to cover rising costs.

AXA chief executive John O'Neil said: "We have had at least one weather event every year for the past five years. There used to be one every three years."

The catalogue of incidents that the industry has had to contend with includes high winds, which reached more than 90mph; flooding which affected large parts of Dublin, as well as areas such as Foynes, County Limerick, which suffered a spring tide 1.8m higher than usual. The recent weather is the worst since 1984, according to meteorological experts.

However, to exacerbate the problem faced by insurance companies, yet more pressure was brought to bear after it emerged that flood relief funds were slashed by 80% in December's budget.