Technology can’t be wrong, or can it? Well, in the case of Direct Line’s new geospatial analysis system used to map out flood risks, one former policyholder is saying there must have been some huge mistake when his home insurance premium soared 442%.
A report by The Guardian cited Paul Barlow, whose premium for a two-bed property near Tower Bridge rose from only £189 last year to this year’s £1,025. Direct Line has confirmed it is using a new flood-mapping tool, which affects premiums in both directions.
“We recently updated our assessments to include geospatial analysis of risk, which has meant that in some cases renewing customers may have seen an increase or decrease in the premium quoted,” said a spokesperson, as quoted by the report.
However, Environment Agency maps showed that while Barlow’s Bermondsey house is within the tidal floodplain, there is a 0.1%-1% chance of flooding per year.
“The Thames Barrier is one of the most advanced in the world – £2 billion worth – and now a major insurance company is saying that isn’t good enough, and huge swathes of what is some of the most expensive real estate in the country is so at risk that the insurance costs need to be hiked by five times,” Barlow was quoted as saying.
Refusing to pay over £1,000 to renew, he switched insurers for only £167.
Related stories:
Lloyd’s CEO makes call for US flood insurance reform
MS Amlin collaborates with Imperial College for flood response model
