+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Britain's horrific floods are going to cost more than £1.5 billion in economic losses

Dec 29, 2015, 14:22 IST

Members of Cleveland Mountain Rescue and soldiers from 2 Battalion The Duke of Lancasters Regiment assist members of the public as they are evacuated from the Queens Hotel in York city centre as the River Ouse floods on December 27, 2015 in York, England. Heavy rain over the Christmas period has caused severe flooding in parts of northern England, with homes and businesses in Yorkshire and Lancashire evacuated as water levels continue to rise in many parts.Ian Forsyth/Getty Images

The prolific flooding, which has caused devastation across much of the north and north west of England over the past month, could cost the UK economy more than £1.5 billion ($2.24 billion) in economic losses.

Advertisement

According to a report released over the weekend by financial services firm PwC, the economic losses, which includes insurance losses, caused by flooding from Storm Desmond and Storm Eva are already around £1 billion ($1.49 billion), but could increase more than 50% if heavy rain continues to fall as expected.

Mohammad Khan, PwC's general insurance leader said in the report (emphasis ours):

"After Saturday's torrential rain, and with rare "danger to life" warnings issued, the economic damage to the UK could be significant.

"It is still early to estimate losses but, based on the areas where significant rain has fallen, the great number of roads submerged and including the losses arising from Storm Desmond earlier this month, we would give a very initial estimate of economic losses of between £900m and £1.3bn ($1.34 to $1.94 billion), with the insurance industry bearing between £700m to £1bn of this. Unfortunately many areas that were affected during Storm Desmond have been flooded again."

Advertisement

"If rain continues to fall in large quantities, and the areas with warnings in place do indeed flood significantly, it could well be that the total economic losses could breach £1.5bn with an additional significant increase in insurer losses from our initial estimate."

Christopher Furlong/Getty Images

Flooding first ravaged parts of Cumbria and the Lake District in early December as a result of unusually high rainfall caused by Storm Desmond. Many parts of the county then flooded again just before Christmas, just as clean up operations were starting to take effect.

The UK was then hit by severe flooding again over the Christmas period, with Yorkshire and Lancashire worst hit. In York, the River Ouse rose to five times normal levels, and the Army was called in in some areas to deal with the damage caused by the floods.

Prime Minister David Cameron has already come under pressure to increase spending on flood defences after the devastation, and PwC's report on the losses caused by the floods could prompt further calls for the prime minister to do more to prevent such severe flooding in the future.

NOW WATCH: Animated map shows all the major oil and gas pipelines in the US

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article