Hiscox facing £110m bill after Harvey’s trail of destruction

Hurricane Harvey could be the most expensive natural disaster in history, some have warned, at a massive $180 billion.

For Lloyd’s of London insurer Hiscox the bill will be a more manageable, though still hefty, $150 million (£110 million), it told the stock market today.

It thinks the total cost to insurers will be $25 billion, a slice of the record $180 billion that the governor of Texas thinks it could cost to repair all of the damage.

The insurer says its own estimate of costs is “within the group’s modelled range of claims for an event of this nature”.

It is exposed through its reinsurance arm and in flood cover.

Hiscox chief Bronek Masojada, said: “Our priority is to pay claims quickly... Harvey has also highlighted the lack of flood cover for large parts of the US market.”

He added: “2017 will be an expensive year for natural catastrophes but the industry can cope.”

Rates are likely to rise, say City analysts, as Hiscox shares fell 28p to 1223p.