Insurance could become more expensive due to weather extremes

FloodFlood in Tvedestrand.Photo: Kristian Vabo / NTB scanpix

‘If Skadeforsikring’ (If) said that insurance could become more expensive as a consequence of major damage caused by increased rainfall.

 

‘We live in a world where something is happening to weather and climate, as we see in the insurance industry through our figures and statistics,’ said communications adviser, Sigmund Clementz, of If Skadeforsikring to Nationen newspaper.

If has approximately 3.6 million customers in the Nordic and Baltic countries.
Clementz emphasised that prices will increase over the next decades.

‘The prices of insurance policies could be more expensive as a consequence of more extensive damage caused by increased rainfall, but in the long term, over the next decades,’ Clementz said.

Average payouts per accident have doubled over the past five years compared to averages for the past 32 years.

‘Insurance is about managing risk. That there are floods or rain is not something that surprises us. We have catered for various weather situations in our budgets.

The big event this year is all the rain in southern Norway. What’s new is that the floods lasted two and a half times as long,’ said Clementz.

 

©  NTB Scanpix / Norway Today

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