Business advisory firm Deloitte warns the insurance industry is likely to suffer significant costs from those whose houses were flooded in yesterdays storms.
The dark clouds that gathered over the North East yesterday afternoon caused chaos throughout the region as the roads became rivers, cars were submerged underwater and many houses were flooded.
Steve Williams, financial services partner at Deloitte in the North East said: “Previous experience has shown that wide scale flooding has a significant impact on the level of claims borne by insurance companies and in recent years has tipped them into losses for their household accounts.”
He added: “The overall impact of this will almost certainly be further premium rises for policyholders as insurers seek to recover the losses they have made.”
The full extent of the floods are still being realised as the clean up continues and roads begin to re-open.