I nsurers paid out a record-high 1.4 billion pounds ($1.78 billion) in claims in the UK during the second quarter, primarily due to weatherrelated catastrophes such as fires and flooding, the Association of British Insurers (ABI) said on August 13.
Increase in home price, premium
The average price of home insurance in the country rose by 6% from the previous quarter to £396 in the three months ended June, while the average premium for a combined policy increased by 19% compared to the same period in 2023, according to a media report.
Homeowners and businesses alike are struggling with damages from storms, heavy rain, and frozen pipes. Claims for damages to homes reached £144 million in the period, marking the fifth consecutive quarter weather-related claims have exceeded £100 million, the ABI reported.
Increased flooding in Britain from overflowing rivers and blocked drains is causing insurers to pull back from offering coverage, particularly for commercial properties and residential landlords, according to industry representatives. The industry body said a muchneeded reform to the planning system, with a focus on prevention measures, is essential to better fortify the country against climate change.
“Urgent government action to tackle surface water flooding and maintain flood investments and maintenance will also help reduce the future impact of flooding,” Louise Clark, Policy Adviser at the ABI said. London was among the cities hit by flash floods last week after torrential summer rain.
Data shows that the late autumn, winter and early spring months brought a deluge of rain to the UK. Total rainfall between October 2023 and March 2024 was the UK’s second wettest period on record. Louise Clark, policy adviser at the ABI, said providers were doing all they could to provide “competitively priced cover”.
Appeal to government
She called on the government to take action on tackling the causes and impact of flooding. The average payout for a home insurance claim rose 16% on the first three months of the year to £5,284 in the April to June period.
