Property Claims on the Rise from Climate Change and Severe Weather
In recent years, insurance trends have revealed a notable increase in property claims, largely driven by climate change and the rise in extreme weather events. This shift presents both challenges and opportunities within the industry, highlighting the urgent need for reliable support in managing property damage. As more homeowners and businesses seek professional assistance to navigate the complexities of property damage claims, Aspray remains well positioned as the UK’s leading loss assessor, ready to address the growing demand caused by these environmental changes.
Driving Change in Property Claims Insurance Trends
In Quarter 2 of 2024, insurers recorded a historic payout for residential and commercial property claims, reaching an astonishing £1.4 billion over the months of April, May, and June, according to the Association of British Insurers (ABI). This marked the highest payout for a single quarter since data collection began in 2017. The figure also represents a 5% increase from Quarter 1 of 2024, when claims totaled £1.3 billion during January, February, and March.
A significant portion of these payouts was due to weather-related damage. Insurers paid out £144 million for damage to homes caused by storms, heavy rainfall, and frozen pipes. Commercial properties were also heavily impacted, with £81 million paid out for weather related damages.
The Effects of Climate Change and it’s Impact on Property
Much of this increase in claims can be attributed to climate change and the notable rise in extreme weather events across the UK in recent years.
Louise Clark, Policy Adviser at the ABI, commented: “Our latest figures highlight the severe impact that adverse weather can have on individuals and their homes. This explains the importance of the government taking the opportunity to reform the planning system, focusing on prevention and resilience measures to reduce the nation’s vulnerability to climate change. Immediate government action to address surface water flooding and sustain flood-related investments and maintenance will also help mitigate the long-term effects of flooding.”
As part of its commitment to raising awareness, Aspray supports the FloodRe Build Back Better scheme. This government initiative partners with insurers to offer up to £10,000 in funding to homeowners impacted by flooding. The funds are used to implement flood resilience measures, reducing future damage if the area faces flooding again. Learn more here.
Experiencing the Growth of the Property Claims Market
At Aspray, we have seen firsthand the remarkable growth of the property claims market in recent years. As the number of claims continues to rise, we’ve had the privilege of helping more customers than ever before, offering expert guidance and support across a wide range of incidents. From managing the complexities of fire losses and the aftermath of water damage to addressing the destruction caused by severe storms, our dedicated team is here to assist every step of the way, ensuring a smooth and efficient claims process.
