How the Climate Crisis is Impacting the UK Property Insurance Market in 2023-2024
The UK property insurance market is increasingly being reshaped by the climate crisis, with extreme weather events such as storms and flooding becoming more frequent and costly.
Recent data from 2023 and 2024 highlights the financial strain on insurers and property owners alike, driven by more severe storms, heavy rainfall, and unpredictable weather patterns.
Rising Claims Due to Extreme Weather
In 2023, UK insurers faced record-breaking claims from weather-related damage. Storm Babet, which struck in October 2023, was one of the most destructive, causing extensive flooding and contributing to a surge in claims. The overall average cost per weather-related claim increased by 73% between 2018 and 2023, reaching a high of £143,178 per claim. This is largely attributed to more intense storms and heavier rainfall, exacerbated by climate change
Storms Cause Huge Insurance Payouts
Other storms, including Storms Ciarán and Henk, contributed to insurers paying out £1.4 billion in property claims, marking a historic high. Flooding, storm damage, and subsidence were major contributors to these claims, with homeowners and businesses alike suffering significant financial losses
The Growing Cost of Flood Damage
Flooding continues to be one of the most significant risks facing UK property owners. According to the Association of British Insurers (ABI), claims related to flooding and storm damage reached £573 million in 2023, a 36% increase from the previous year
The insurance industry has had to adjust premiums to reflect this growing risk. By mid-2024, the average cost of home insurance had risen by 19% compared to 2023, with flood-prone areas facing even steeper increases
Flood Re, a government-backed initiative that helps provide affordable flood insurance, has reported that a third of its claims since its inception in 2016 came in the 2023-2024 period
Long-Term Implications for the Market
The combination of rising claims, more frequent extreme weather events, and increasing premiums is putting significant pressure on the UK property insurance market. According to an EY report, insurers have been paying out more in claims than they collect in premiums for several consecutive years, leading to financial losses
The Met Office predicts that by 2070, UK winters could become up to 30% wetter and summers up to 60% drier, further amplifying the risk of both flooding and subsidence
Conclusion
The climate crisis is having a profound impact on the UK property insurance market, with 2023 and 2024 serving as stark reminders of the financial risks posed by extreme weather. As storm and flood damage claims continue to rise, homeowners and businesses face the dual challenge of increasing premiums and reduced coverage options. Without significant investment in climate resilience, the market will likely continue to face growing instability in the coming years.
For more detailed insights, refer to the Association of British Insurers and Imperial College London’s Grantham Institute.
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Access to a wide range of insurers to source suitable insurance cover for your needs
Bespoke Insurance Schemes & Portfolio Policies available
We can tailor your policy to suit your exact needs to give you complete peace of mind
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Over 40 years experience working with the best insurers in the UK
Excellent communication so that you understand what risks you are insured against
Why choose the Property Insurance Centre
Independent broker with staff you can speak to by phone or online
Access to a wide range of insurers to source suitable insurance cover for your needs
Bespoke Insurance Schemes & Portfolio Policies available
We can tailor your policy to suit your exact needs to give you complete peace of mind
Competitive Premiums
Cover available for the buildings while the property is being converted, renovated or extended
Over 40 years experience working with the best insurers in the UK
Excellent communication so that you understand what risks you are insured against
Why choose the Property Insurance Centre
Independent broker with staff you can speak to by phone or online
Access to a wide range of insurers to source suitable insurance cover for your needs
Bespoke Insurance Schemes & Portfolio Policies available
We can tailor your policy to suit your exact needs to give you complete peace of mind
Competitive Premiums
Cover available for the buildings while the property is being converted, renovated or extended
Over 40 years experience working with the best insurers in the UK
Excellent communication so that you understand what risks you are insured against
Specialists in Commercial & Residential Insurance
We have over 40 years experience as Residential and Commercial Insurance Brokers. We find the right policy to suit your needs and understand the risks that a property owner can face in the course of ownership. We work closely with our Insurers to get the best rates and our experience and excellent relationships with them mean that we can provide cover for even the most difficult to place risks.
Whether you have an adverse claims history, a high value property or a large portfolio of properties, we can source suitable cover for you. Whatever your requirements, we can tailor a specialist property insurance policy to suit your exact needs and provide you with a range of quotes to choose from. Established in 1976, we are not a call centre but a specialist insurance broker with a traditional office mentality, where the client comes first.
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Contents
- 1 How the Climate Crisis is Impacting the UK Property Insurance Market in 2023-2024
- 2 Rising Claims Due to Extreme Weather
- 3
- 4 Insurance under one roof
- 5 We are specialists in many types of insurance
- 6 Storms Cause Huge Insurance Payouts
- 7 The Growing Cost of Flood Damage
- 8 Long-Term Implications for the Market
- 9 Conclusion
- 10 Block of Flats
- 11 Unoccupied
- 12 Home Insurance
- 13 Residential Landlord
- 14 Land Liability
- 15 Commercial Property
- 16 Lockup Garage
- 17 Restaurant
- 18 Takeaway
- 19 Classic Car
- 20 Mixed Use
- 21 Tradesmen
- 22 Why choose the Property Insurance Centre
- 23 Independent advice by approachable staff online or by phone
- 24 Access to a wide range of insurers to source suitable insurance cover for your needs
- 25 Bespoke Insurance Schemes & Portfolio Policies available
- 26 We can tailor your policy to suit your exact needs to give you complete peace of mind
- 27 Competitive Premiums
- 28 Cover available for the buildings while the property is being converted, renovated or extended
- 29 Over 40 years experience working with the best insurers in the UK
- 30 Excellent communication so that you understand what risks you are insured against
- 31 Why choose the Property Insurance Centre
- 32 Independent broker with staff you can speak to by phone or online
- 33 Access to a wide range of insurers to source suitable insurance cover for your needs
- 34 Bespoke Insurance Schemes & Portfolio Policies available
- 35 We can tailor your policy to suit your exact needs to give you complete peace of mind
- 36 Competitive Premiums
- 37 Cover available for the buildings while the property is being converted, renovated or extended
- 38 Over 40 years experience working with the best insurers in the UK
- 39 Excellent communication so that you understand what risks you are insured against
- 40 Why choose the Property Insurance Centre
- 41 Independent broker with staff you can speak to by phone or online
- 42 Access to a wide range of insurers to source suitable insurance cover for your needs
- 43 Bespoke Insurance Schemes & Portfolio Policies available
- 44 We can tailor your policy to suit your exact needs to give you complete peace of mind
- 45 Competitive Premiums
- 46 Cover available for the buildings while the property is being converted, renovated or extended
- 47 Over 40 years experience working with the best insurers in the UK
- 48 Excellent communication so that you understand what risks you are insured against
- 49 Specialists in Commercial & Residential Insurance
- 50 Get In Touch:
- 51 We accept most payment types including:
- 52 UK Call Handlers & Dedicated New Business Team
- 53 Call Us on 0800 085 3761
