Insurers are set to pay 300-500 million pounds (about US$480-800million) to cover UK claims related to damage caused by the StJude's Day storm, Willis Re estimates, keeping profits intactdespite the human cost.
|Northern Europe was battered by hurricane strength winds onMonday, killing more than a dozen people and causing widespreaddisruption as power lines and transport links were cut by fallingtrees.
|The figure falls far short of having a material impact onprofits for the insurance industry which operates in the context ofabsorbing losses from Atlantic hurricanes which commonly amount tobillions of dollars.
|Eamonn Flanagan at Shore Capital Stockbrokers said insuredlosses would have to reach at least 1 billion pounds before firmswith large market share in home insurance such as RSA or DirectLine saw their profits affected.
|“There is no getting away from the human tragedies but thiswasn't 1987,” he said, in reference to a storm which killed 18people, felled millions of trees and caused insured losses of morethan 2 billion pounds in today's terms.
|Tim Edwards, Executive Director, Willis Re UK, said damage fromMonday's storm was comparable to 'Windstorm Kyrill' in 2007.Insured losses from Kyrill were 370 million pounds in today'sterms, data from the Association of British Insurers shows.
|“Losses from the storm were concentrated predominantly in theSouth of England, with significant damage coming from fallen trees– which were heavily laden with leaves because of the time of year– fallen tiles and smashed windows,” Edwards said.
|A spokeswoman for insurer LV, which insures more than 500,000British homes, said it saw an eightfold increase in calls comparedto a “usual Monday” and more than 750 new claims registered as aresult of the storm.
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