He said: “If the rioting continues I can see insurance companies coming out with new insurance policies much like what happened with the volcanic ash cloud incident.
“There could definitely be a flurry of activity with insurers very quickly.”
During the volcanic ash cloud incident last summer many of Britain’s biggest insurers altered their travel insurance policies so new customers wouldn’t be covered if their plans were disrupted by any volcanic ash cloud. This comes under the “known events” clause.
Aviva, Barclays, Churchill, Direct Line, More Than and Natwest all covered the ash cloud fallout for existing policy-holders but amended their terms for new customers.
Zurich has already said it will be writing to the government to recover what it pays out to customers claiming because of the riots.
The Association of British Intermediaries reassured customers that they were covered for riot damage under their home and business insurance and claims would be paid by their insurer as quickly as possible.
A spokeswoman for the ABI said: “Insurers are not thinking about next years’ prices they are focused on paying claims to customers affected as quickly as possible to help them get back on their feet.
“As a result of the operation of the police compensation scheme under the Riot Damages Act 1886, in place for over 125 years, there is no reason for premiums to have to rise to pay for such a once in a generation event as a riot.”
The ABI estimates that insured losses and damage suffered by individuals and UK businesses are likely to be well over £100m.
A spokeswoman for insurance provider LV= said: “All of our customers are fully covered from riots and civil disturbances and we will continue to cover them with no intention of changing our policy on it just as we did during the volcanic ash cloud incident.
“To change the policies on insurance would be a very hypocritical and cynical thing to do. This is a one-off event and is exactly the type of thing insurance is there for.”
