The ABI found that UK insurers paid out £1.4 billion in claims during Q2 2024, a 5% increase on the previous quarter, and the highest sum since the Association started gathering data in 2017.
“The average payout per home insurance claim was also up, rising 16% on the previous quarter to £5,284,” or $6,746, the ABI noted. Furthermore, the ABI found that Q2 was the “fifth consecutive quarter that weather-related claims have been above £100 million,” and that “claims for damage to homes from storms, heavy rain, and frozen pipes reached £144 million in Q2 of this year.”
The impact of this is being reflected in home insurance premiums, which rose 6% compared to the previous quarter.
Louise Clark, Policy Advisor at the ABI, commented on the figures: “These demonstrate the devastating impact that adverse weather can have on people and their homes. That’s why it’s important that the government takes the opportunity to reform the planning system, focusing on prevention and resilience measures to help reduce our nation’s vulnerability to the effects of climate change.”
She added: “Urgent government action to tackle surface water flooding and maintain flood investments and maintenance will also help reduce the future impact of flooding.”
Greenpeace UK responded to the ABI’s report, reaffirming its desire for the newly elected Labour Government to “stop new oil and gas drilling and force fossil fuel giants to pay for climate damages.” The organisation noted that the UK is increasingly seeing abnormal extreme weather events.
Additionally, environmental groups have found that numerous insurance companies are removing their coverage from regions particularly affected by climate change in Australia, the U.S., and other impacted areas. In July, UK climate activists launched the “Insure our Survival” campaign, aimed at incentivising insurers to withdraw their backing for companies driving extraction and contributing to climate issues.
