ABI warns of home insurance price increase

29th June, 2005

The Association of British Insurers (ABI) has warned that increasingly erratic weather patterns will lead to escalating insurance premiums.

Speaking on BBC Radio Four's Today programme on Wednesday, ABI spokesman Nick Starling predicted that by 2008, insurance costs could have risen to by up to two thirds of the current amount.

He urged the government to take immediate action to tackle the problem of climate change.

"'They can also continue to improve coastal defences, they can build in flood protection, and they can plan better as to where they locate buildings and how they put up buildings," he suggested.

Mr Starling added that the ABI wanted to ensure cover for consumers was available, and that risk was spread out over a wide range of insurers.

The ABI caution comes just before next week's G8 summit in Gleneagles, where climate change and its consequences will feature on the agenda.

 

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