Businesses in the UK benefit from a strong insurance system, which was exemplified by the response to this year's floods, according to the Association of British Insurers (ABI).

Members of the ABI have processed approximately 165,000 claims relating to the summer floods and around £3 billion to homeowners and businesses.

"With the average cost of a property flood claim running at £20,000, it is clear that Britain's homeowners and businesses are benefiting form a unique and extremely valuable service," commented Stephen Hadrill, director general of the ABI.

As part of the government's Lessons Learnt Review, businesses and residents affected by the flooding rated their insurance companies an average of 3.26 out of five for their response to the catastrophe.

By October 2nd, the ABI had estimated that about 15 per cent of business' insurance claims had been settled.

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