Winter cost insurers £650m

The Association of British Insurers (ABI) says insurers paid out £650m in 335,000 claims for damage to homes, businesses and vehicles following the coldest winter in 30 years.

During the heavy snow and freezing temperatures that gripped Britain during December 2009 and January this year, insurers paid out:

• £395m to insured motorists. Many of the 268,400 motor insurance claims were for accidental damage as motorists struggled on slippery roads.
• £255m to homeowners and business customers for property damage. The 66,600 claims was double the number of weather damage claims insurers would normally expect to see during the period. Of these, the majority - 60,200 - involved homes, at a cost of £194m. A typical claim involved roof damage caused by the snow.

Nick Starling, the ABI's director of general insurance and health, said: “Insurers have paid out nearly £1bn to customers following bad weather this winter, as the heavy snow came weeks after the flooding in Cumbria, which led to insurers paying out £200m in flood claims."