Association of British Insurers Statement 3/6/13

Mr John Wooden of the Association of British Insurers:

“Insurers do not, at present, see a perceived risk of subsidence as a result of fracking.

We believe that developments such as the one outlined require authorisations that include risk assessment analyses and if there is a threat to others’ property that would have to be mitigated before work could commence.

As in all locations, a reported history of subsidence (or indeed any other type of loss) in a location will be taken into account when offering and pricing insurance.

We are not aware of any claims where seismic activity as a result of fracking has been mooted as a cause for damage.”