DisastersAs storms continue to batter U.K., estimates of cost rise
As Storm Frank – which is following on the heels of Storms Eva and Desmond — continues to batter England, Scotland, and Wales, estimates of the cost of the damage wrought continue to rise. The total economic loss caused by the three Storms may well breach £3 billion – and these projections do not include any government spending on flood defenses, estimated to be between £2.3 billion and £2.8 billion.
Mature oak torn apart in Eastnor Park // Source: commons.wikimedia.org
As Storm Frank – which is following on the heels of Storms Eva and Desmond — continues to batter England, Scotland, Wales, and Northern Ireland, estimates of the cost of the damage wrought continue to rise. Mohammad Khan, general insurance leader at PwC, told the Telegraph that “The effects of continuing torrential weather are set to hit parts of the UK even harder.
“Our latest estimates now suggest that economic losses due to Storms Eva and Desmond will be £1.6 billion - £2.3 billion, with insured losses of between £900m - £1.2bn.
“However, these projections do not include any government spend on flood defenses which we understand may be between £2.3bn and £2.8bn. Also, these estimates do not currently include the impact of Storm Frank.
“Based on the currently available information, our understanding is that Desmond and Eva combined had at least 11,500 houses flooded which combined with the commercial insurance losses we are expecting is the driver of our insured loss estimate.
“Given that Storm Frank is ongoing it is far too early to tell what the full impact will be.
“However, given 16,500 homes and businesses have already been left without power by Storm Frank in the Republic of Ireland, Northern Ireland and the North of Scotland, the total economic loss caused by the three Storms may well breach £3 billion.”
