In 2023, property insurance payouts in the UK reached a staggering $6.07 billion, marking an 18% increase from the previous year, according to the Association of British Insurers (ABI).

This surge was primarily driven by a record high in weather-related home claims, which amounted to £4.86 billion.

The ABI reported a significant uptick of 36% in weather-related home damage claims, reaching £573 million. Homes across the nation bore the brunt of successive storms during the autumn months, resulting in damages caused by high winds, storm debris, flooding, and burst pipes.

Industry sources suggest that insurance companies globally are grappling with escalated claims arising from natural disasters. This trend is attributed to the impacts of climate change and the proliferation of construction in regions vulnerable to extreme weather conditions.

Insurers note an unprecedented surge in storm-related losses across Britain and other parts of Europe, exacerbated by factors such as inflation and disruptions in the supply chain. Consequently, the costs of repairs have soared, leading to larger insurance payouts.

Winter storms in northwestern Europe in early 2023 incurred insured losses exceeding $4 billion, surpassing the previous 10-year average of $2.5 billion, as reported by Swiss Re.

ABI policy adviser Louise Clark emphasized the ongoing advocacy for increased government investment in flood defense and maintenance. Additionally, there are calls for revisions to the planning system to discourage construction in flood-prone areas.

Recent data from the ABI revealed a 13% year-on-year increase in the average UK home insurance premium during the fourth quarter of 2023.

While Britain's Flood Re reinsurance program, funded by insurers, aims to enhance the affordability of home insurance, it does not extend coverage to homes constructed after January 2009.