1. Fire Performance Network
Tim Humphreys ABI
Fire Performance Network

2. Recent developments in fire insurance claims
Insurers are very concerned about the increasing cost of fire losses, which rose by 16% between 2007 and 2008 to £1.3bn
Business Interruption claims cost a further £200m per year
Insurers are reporting more multi-million pound claims
Insurers agree that the number of fires is decreasing but the average cost of fire is increasing

3. Slide 1 – Cost of fire claims notified in the UK, £M, 1988-2008

4. Slide 2 – Deaths from fires 1996-2006

5. Slide 3 – Number of Fires in UK, thousands, 1981-2007

6. Slide 4 - Average Cost of a fire claim 2002-2008

7. Fire and Recession
The is a link between recession and certain types of crime, for example burglary
During the last recession ( ) the number of arson fires increased from 53,000-80,000
Recession is also likely to increase the number of fraudulent and malicious cases of arson
Around half of all fires at business premises are caused by arson and about a fifth of house fires are caused by arson

8. Proposals to reduce arson
We all need to work together to reduce arson
Police and FRSs need to work more closely together to target arsonists and to bring them to justice
The insurance industry should focus more resources on detecting arson and publicising cases of arsonists that have been caught and had their claims turned down
Insurance and FRS investigators should work more closely together to minimise the chances of successful fraudulent arson

9. The case for sprinklers
Insurers agree that sprinklers are key to minimising fire damage once a fire has started
England allows unusually large buildings to be built without sprinklers
Insurers would like to see the more widespread use of sprinklers but the competitive insurance market means they cannot require them across the board
The cost/benefit case for sprinklers should be re examined against the background of the increasing cost of fire claims
Cost/benefit case should include the costs to wider society and economy of fire
Governments of the UK should commission this work, overseen by a broad stakeholder project Board

10. Other factors
Insurers are also concerned about increasing response times; possible allocation of resources away from the commercial estate and firefighting tactics
Modern methods of construction and the performance of these buildings during fires

11. Performance Indicator
We think it would be helpful for Chief Fire Officers to include the economic cost of fire in their areas as an indicator of performance
For this to be effective a credible measure of the economic cost of fire in FRS areas needs to be developed
This would need to be more sophisticated than the current data available from, say, to Entec work on the economic cost of fire
The FPA could also supply tailored data to each FRS on the cost of fires in their areas

12. What is the ABI doing about the increasing cost of fire?
We have developed a draft policy paper on fire issues which includes proposals to reduce the number and cost of fires
The paper will be launched in Parliament on Thursday
Proposals include setting local targets to reduce economic losses
FPA to provide local FRSs with details of large looses in their areas
National campaigns to reduce arson
Insurers, business groups and others promoting fire risk management in businesses
Review of the evidence base on the benefits of sprinklers overseen by an independent Project Board
Widely endorsed guidance on the benefits of sprinklers
A task force to look at the fire performance of MMC buildings

13. Questions
Is it desirable to have a agreed economic cost of fire indicator?
Can we improve currently available data?
How can we work together towards a common understanding of the economic cost of fire and how can we reduce it?