Grenfell Tower claims may reach USD65 mn

The insurer of London’s Grenfell Tower, where at least 80 people died in a fire, raised its estimate for property and liability insurance claims to GBP50 million (USD65 million).

British police have said the final death toll from the blaze that gutted the 24-story apartment block on June 14 may not be known until next year and the government has appointed a retired judge to lead a public inquiry into the disaster.

Norway’s Protector Forsikring, the insurance provider for the Royal Borough of Kensington and Chelsea, which owns the building, also said it had been aware Grenfell Tower had been refurbished during the insurance underwriting process.

It said it had considered this renovation, which was criticised by some residents, as a positive step.

Asked whether the company was aware at the time that the cladding used for the tower block was potentially flammable, Protector Forsikring’s chief executive Sverre Bjerkeli told Reuters: “We must let the investigation run its course.”

Protector Forsikring said in its second-quarter earnings that it estimated gross claims would total GBP50 million, doubling a previous GBP25 million forecast.

The insurer’s previous estimate was for claims of GBP20 million to cover the building itself, with the remainder covering additional expenses such as alternative housing for residents. It provided no breakdown of the updated figure, but it has previously said the cost would largely be covered by reinsurance through Germany’s Munich Re, which declined to comment. Britain’s Jardine Lloyd Thompson, which was the insurance broker for Grenfell Tower, has previously said it was working closely to assist its client in the case.