July 07, 2017
Protector Forsikring, the insurer for the tragic blaze that engulfed Grenfell Tower last month, has said that it expects gross claims of £50mn from the disaster.
In its second quarter investor presentation, the Norwegian carrier warned that the preliminary estimate remains “highly uncertain” and that it will “take years” for a full picture of claims levels to materialise.
It said that the £50mn gross estimate includes both property, liability and other potential related costs.
Protector, which provides insurance for Royal Borough of Kensington and Chelsea and the management company, noted that the bulk of claims will be picked up by its reinsurers, with its net exposure expected to total around £2.5mn.
According to reports, Munich Re is the lead reinsurer on Protector’s property reinsurance programme, with Willis Re the reinsurance broker.
The primary cover for the council was placed by London-listed broker JLT.
Cunningham Lindsey has been hired to handle claims, while Protector has picked law firm Kennedys to act as legal counsel on regulatory issues.
The Grenfell Tower blaze is said to have killed at least 80 people although police have said that the final death toll will not be known until at least the end of the year.
The fire started after a fridge freezer malfunctioned, with the fire spreading up one side of the building externally, before engulfing the entire 24 storey block of flats.
The tragedy has sparked an inquiry into the cladding installed on Grenfell Tower in a recent renovation, with experts saying a more fire-resistant type could have been used. Both the cladding and insulation on the outside of the building failed all preliminary tests by the police.