The insurance industry took a £650 million hit in December last year as the coldest winter in 30 years took its toll on the British people.

The Association of British Insurers (ABI) said that the industry had had to deal with around 335,000 claims in December 2009 alone, amounting to some £650 million being paid out.

Damages were spread across homes, businesses and vehicles as the prolonged bursts of snow and ice wreaked havoc on a country no longer used to such bouts of dismal conditions.

Most of the money went to insured motorists. They were awarded some £395 million as many claimed for accidents involving slippery conditions as the snow and ice made driving treacherous. The amount of claims numbered 268,400.

There were a lesser number of property damage claims – around 66,000 – but there was still a substantial £255 million paid out to homeowners and business customers. This was in fact double the number of claims that the insurers would usually see in December. Of the 66,000, most (a touch over 62,000) were claims that involved damage to houses and the cost of these repairs (many involving snow on roofs) were put at £194 million.

The ABI also highlighted the cost of the flooding in Cumbria which amounted to some £200 million.

Nick Starling, the Director of General Insurance and Health of the ABI, said:
“Insurers will always respond quickly to the large number of claims that often result from bad weather. From dealing with snow damaged roofs, burst pipes, to repairing or replacing vehicles damaged by treacherous driving conditions, insurers helped their customers get through the snow and the freezing temperatures. Insurers have paid out nearly £1 billion to customers following bad weather this winter, as the heavy snow came weeks after the flooding in Cumbria, which led to insurers paying out £200 million in flood claims.”

Guest Article by Neil Camp