Riots may force retailers to take insurance in-house

The riots that have plagued the UK since Saturday may force retailers that have suffered major losses to form their own in-house insurance companies.

Stuart Shepley, insurance partner at KPMG, said: "Many high street brands have suffered major losses during the riots, which have come at a time when their businesses are already under pressure.

"As a result we could see increased usage of risk management tools such as captive insurers whereby retailers establish their own ‘in-house' insurance companies for the purpose of covering their own assets. This will protect profitability for these retail businesses at the very time that it is needed and