Storms and flooding took record toll on insurance claims in 2024 – ABI
The Association of British Insurers said it has ‘long stressed’ the need for further investment in flood defence and maintenance.
Insurers paid out a record £585 million for weather-related damage to people’s homes and possessions in 2024, according to figures from the Association of British Insurers (ABI).
It marks the highest total since the association started collecting the data in 2017.
For the final quarter of the year, claims for damage to homes from adverse weather reached £146 million – making it the seventh quarter in a row when weather-related claims have topped £100 million.
High claims costs had an impact on premiums, with the annual average price of combined building and contents home insurance in 2024 rising by £55 (16%) compared with 2023 to reach £395.
The average price of a combined household buildings and contents policy in the fourth quarter of 2024 was £403 – £4 (1%) lower than the previous quarter but £39 (11%) higher than the same period in 2023.
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.”
Insurers paid out £102 million to businesses for weather-related damage and business interruption during the final quarter of the year.
The ABI pointed to EY figures indicating that, in 2023, for every £1 property insurers received in home insurance premiums, they paid out £1.18 in claims. It said EY is also expecting further losses in 2024.
Philip Evans, senior campaigner for Greenpeace UK, said: “When there’s a car crash, the driver who caused the collision must pay for the costs – why aren’t we treating the climate crisis the same way?”
He said households are “paying the price” for companies at the root of weather damage, adding: “Whether by new taxes, levies, or fines – polluters must be made to pay.”
