UK watchdog seeks Katrina details

Katrina could be the costliest natural disaster in history

The Financial Services Authority (FSA) has asked UK insurers for details of potential liabilities arising from Hurricane Katrina.

The FSA, which regulates the insurance market, wants to know the extent of likely claims from Katrina and whether firms have enough capital to meet them.

Experts fear Katrina may be the most costly natural disaster in history, as insured losses could hit $60bn (£32bn).

The request was part of its standard supervisory duty, the FSA stressed.

Routine supervision

Definitive calculations of Katrina's financial cost are unlikely to be known for some time, such is the scale of the damage across the south-west of the US.

Loss adjustors have not yet been able to travel to the worst affected regions to assess the damage.

It is a matter of interest whether insurers have been affected Financial Services Authority Cost of Katrina mounts

The FSA said it had contacted UK-based insurers to ascertain what their financial position was in regard to Katrina.

"It is a routine part of the supervisory process anytime there are potential losses within the insurance market," said an FSA spokesman.

"It is a matter of interest whether insurers have been affected but I don't think this is anything out of the ordinary."

Lloyd's deadline

Lloyd's of London members have been asked to provide information about the impact of Katrina on their business by this Monday.

Lloyd's has said it expects "significant claims" arising from damage to property and to commercial facilities, particularly oil rigs and other offshore energy facilities in the Gulf of Mexico.

However, it has said it is "well-equipped" to manage the financial impact of the disaster.

Several British insurers have already released preliminary estimates of their potential losses, with Amlin saying Katrina could cost it £60m.