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Weather Damage Insurance Claims up by a Third in 2023

2023 – record high for weather-related insurance claims

Weather-related insurance claims surged by a third in 2023, marking a record high for home insurance claims as climate change continues to fuel the frequency and intensity of severe weather occurrences. The Association of British Insurers (ABI) reported that claims for weather-related damage soared to £573 million last year, representing an increase of over a third from 2022’s £421 million total and the highest ever recorded.

Homeowners faced significant storm damage claims, with £133 million attributed to high winds, £286 million to flooding, and £153 million to burst pipes, notably during winter months. Businesses mirrored this trend, grappling with £443 million in weather-related claims in 2023. Additionally, the average weather-related business pay-out rose from £12,612 in 2022 to £18,542 in 2023.

Weather damage and the Impact of Climate Change

The UK experienced several notable storms in 2023, including Babet, Ciaran, and Debi, likely contributing to the surge in weather-related claims. Louise Clark, Policy Adviser at ABI, emphasised the challenges, stating that insurance payouts reached record levels following a particularly harsh autumn and winter marked by numerous storms, notably Agnes, leading to widespread flooding. Furthermore, the rising temperatures associated with climate change escalate atmospheric moisture levels, heightening the risk of severe storms and flooding. Clark noted, “Extreme weather events may not feel as uncommon as they once did as we confront a changing climate.”

Next Steps

Given ABI’s alarming weather-related claims data, property owners, both residential and commercial, must diligently evaluate risk-mitigation strategies to mitigate weather-related damage. Moreover, it is imperative for property owners to review their insurance coverage to ensure comprehensive protection against weather perils.

Get in touch with us today for expert guidance on safeguarding your property and for tailored insurance solutions to address your specific needs.

Author Harrison Law, Cert CII, Head of Commercial & Private Clients, Cox Mahon