UK fire losses at an all-time high

The cost of fire damage in the UK rose by 16% last year to a record
£1.3bn, according to new figures from the Association of British
Insurers.

Commercial fire damage cost £865m, up 15% on the previous year. School
fires alone cost £33m, with a serious school fire occurring, on
average, every month. Fire damage to homes cost £408m, up 17% on the
previous year.

There has been a particular increase in what are termed large loss
fires (those over £500,000) and the ABI says it is researching the
causes of this increase. While it says that both fraudulent arson and
arson generally are factors, it is nor ruling out other factors such
as modern materials used in construction.

"These are alarming figures," said Nick Starling, the ABI's director
of general insurance and health. "They highlight both the importance
of fire insurance, and reducing and managing the fire risk."

He linked the record figures with the economic downturn which started
last year, and warned that businesses and homeowners are being hit by
an increasing fire threat. "We know that arson tends to increase
during an economic downturn. Insurers are reporting a rise in
large-scale fires that are increasingly putting lives at risk. We
believe that arson and fraud are contributing factors. We are
investigating this worrying trend and will be publishing our
recommendations for tackling the problem later this year."