Home insurance premiums could rise by 5% to 10% in 2012, Deloitte has warned.
A survey of UK insurers conducted by Deloitte has identified escape of water, floods and storms as the risks that most concern home insurers.
Deloitte says its analysis indicates that the household insurance market will make an underwriting profit in 2011 following the losses it made in 2010. However, based on research for Deloitte’s annual household insurance seminar, household insurers are likely to impose price rises of between 5% and 10% in 2012.
James Rakow, insurance partner at Deloitte, said: “In 2010 the insurance industry was hit hard by the extremely cold weather that Britain experienced in December that year