UK insurers pay out record claims as weather-related claims surge: industry body
INSURERS paid out a record-high £1.4 billion (S$2.35 billion) in claims in the UK during the second quarter, primarily due to weather-related catastrophes such as fires and flooding, the Association of British Insurers said on Monday.
The average price of home insurance in the country rose by 6 per cent from the previous quarter to £396 in the three months ended June, while the average premium for a combined policy increased by 19 per cent compared to the same period in 2023.
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 much-needed 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, while several southeastern US states have been inundated by Tropical Storm Debby, providing a sobering reminder to insurers of the growing risks from climate change and urbanisation.
ABI said second-quarter insurer payout increased 5 per cent from the first quarter of 2024. REUTERS
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