FLOODS and storms are the risks that most concern home insurers in Yorkshire, a survey has revealed.
Analysis by business advisory firm Deloitte showed that the household insurance market will make an underwriting profit in 2011 following losses in 2010.
However, the firm’s annual household insurance seminar suggested that household insurers are likely to impose price rises of between 5% and 10% in 2012.
Steve Williams, financial services partner at Deloitte in Yorkshire, said: “In 2010, the insurance industry was hit hard by the extremely cold weather that Britain experienced in December that year, and the additional freeze claims wiped out the profits insurers expected to make on household policies.
“The weather in 2011 was more benign and it looks as though the industry is on target to declare an underwriting profit for 2011.
“The outturn for 2012 will largely be determined by the weather. The storms that hit Britain in the first few days of January are a reminder of the huge losses that natural perils such as storms and floods can produce.”