Lloyd’s of London faces £1.4bn bill for Thailand’s floods

The Lloyd’s of London insurance market is facing claims worth £1.4 billion from the severe floods which have devastated parts of Thailand.

The flooding following last year’s monsoon season affected parts of the capital Bangkok and disrupted manufacturing facilities used to supply major electronics and car firms.

It comes on top of recent major natural disasters in Australia, New Zealand, Japan and the United States.

The sheer scale of the event is likely to prolong the time it takes to assess damage and come up with a more accurate claims figure, but the estimate, which is in line with forecasts for an industry loss of up to $20 billion (£12.6bn).

Chief executive Richard Ward said: “As ever, our priority remains to assess and settle valid claims as swiftly as we can so the community and businesses in Thailand recover.

“The Lloyd’s market is as well capitalised as it has ever been. While claims from Thailand could still evolve over time, paying these claims is within the normal course of business for Lloyd’s.”

The specialist insurance market, which is made up of 87 underwriting syndicates, reported half-year losses of £697 million in September after incurring £6.7bn in claims from major natural disasters in Australia, New Zealand, Japan and the United States.

It said at the time that 2011 was set to be the second most expensive year ever for insurers but that its own claims were being met without any call on its central fund - its fund of last resort.