Insurers paid out £585m for weather-related damage to people’s homes and possessions in 2024, according to the latest claims data from the Association of British Insurers (ABI)
The record claims come following significant bad weather, including 12 named storms in the 2023/2024 storm season, the most named storms since 2015/2016.
Claims for damage to homes from windstorms, flooding and frozen pipes in 2024 surpassed the previous 2022 record for the same claim types by £77m. The figure is also £127m (28%) higher than the weather-related claims payouts for 2023.
Total property claims were £5.7bn – the largest amount paid out in any year on record.
It’s Not Just The Cost of Claims
Insurance is to most people an affordable necessity – a remedy for the damage that adverse weather can cause to people’s homes and businesses. That is not to account for the trauma of having to experience a significant weather event – for some people now a regular ocurrence.
Insurers are prepared for these sorts of events – later in this article we will see how a Loss Adjuster gets ready when they know a storm is on its way – but prevention is always better than cure.
Anthony Jones Insurance Brokers fully support the ABI and other insurers in future climate resilience measures and for the Government to further invest in flood defence and maintenance, and to take swift action on mitigating surface water flooding. We welcome the Government’s announcement of an investment of £2.65bn over the next two years to fix flood defences.
We also hope that this is not just a short-term fix. Research by Fathom, commissioned by Flood Re suggests flood defences can save households £1.15bn by mitigating damage each year, and previous research reveals that for every £1 spent on flood defence maintenance, £7 is saved in capital spend. The research also suggests annual flood losses to households would be 2.8 times higher without current levels of flood protection.
We must get ahead of the pace of climate change.
The Role of Loss Adjusters
Preparing for a major event is what the insurance profession does and, in particular, the role of loss adjusters who work on behalf of insurers.
Accurate early warning data is essential for mobilising teams in advance, securing necessary resources, and preparing surge plans to manage the anticipated influx of claims. On-the-ground employees would be supported by additional surveying and engineering support.
Even with widespread power outages, the use of digital technology is crucial in facilitating the initial response. Digital platforms see First Notice of Loss submissions, including images and videos of damage that allow adjusters to prioritise claims and direct resources to the worst-affected areas during the early response stages.
Often teams are impacted by winds and water that pose a danger to life making the access to impacted sites difficult if not impossible. Add to this infrastructure disruption, such as blocked roads due to fallen trees, and lack of power and you can imagine they are faced with very tricky situations. They also have to deal with simultaneous multiple business-related claims, including those involving denial of access and losses due to widespread power outages.
The primary focus of loss adjusters is to offer clear advice on immediate actions, ensuring repairs are carried out as quickly as possible enabling a speedy return to daily life for households, businesses and the wider community.
