Latest reports suggest that Insurers paid out a record £585m for weather-related damage to homes and possessions in Britain last year, after record-breaking rain and storms hit the country.
The data, from the Association of British Insurers (ABI), revealed that claims for damage to homes from windstorms, flooding and frozen pipes in 2024 surpassed the previous record in 2022, for the same types of claim, by £77m. The figure is £127m higher than the weather-related claims payouts for 2023.
The insurers blame “significant and consistent bad weather” for the record payments. The 2023-24 storm season included 12 named storms – the most named storms since 2015-16. Climate breakdown has made recent storms more frequent and intense, analysis by the Met Office found. Insurance premiums are climbing globally in areas susceptible to increased risk of severe hurricanes, floods, fires and other extreme events. In the UK, the annual average price of combined building and contents home insurance in 2024 went up by £55 (16%) to £395, compared with 2023.
The figures come after Guardian analysis revealed that more than 100,000 new homes will be built on the highest-risk flood zones in England in the next five years.
Read also: AI’s global impact takes centre stage at Paris summit
Mark Shepherd, head of general insurance policy at the ABI, said: “Our latest data serves as a blunt reminder of the devastating damage that adverse weather can cause to people’s homes and businesses.
“Insurers are braced for these sorts of events at any time – but prevention is always better than cure. That’s why we continue to advocate for climate resilience measures to be carefully considered in all planning decisions and building standards, to ensure properties are fit for the future and that they are not built in areas prone to climate risk. We’ve also long stressed the need for government to further invest in flood defence and maintenance, and to take swift action on mitigating surface water flooding.”
The UK government has recently committed to boosting flood defence spending to £2.65bn over the next two years, but the ABI is calling for more guaranteed spending. Insurers want the government to promise at least £1bn a year in flood defences from 2026 onwards. They argue this saves money as research has found that for every £1 spent on flood defence maintenance, £7 is saved in capital spend.
Businesses were also hit by extreme weather. The data shows insurers paid out £102m to businesses for weather-related damage and business interruption during the final quarter of the year. This is an increase of 7% on the previous quarter, and 16% on Q4 2023.
Story was adapted from the Guardian.
