In the second quarter of 2024, UK insurers paid out an unprecedented £1.4 billion ($1.78 billion) in claims, largely driven by weather-related disasters such as fires and

flooding, according to the Association of British Insurers (ABI).

The average cost of home insurance in the UK rose by 6% from the previous quarter, reaching £396 for the three months ending in June. Additionally, the average premium for combined home and contents insurance policies saw a significant 19% increase compared to the same period in 2023.

Homeowners and businesses across the country are grappling with damages caused by storms, heavy rainfall, and frozen pipes. During this period, claims for home damages amounted to £144 million, marking the fifth consecutive quarter where weather-related claims surpassed £100 million, as reported by the ABI.

The rise in flooding across Britain, due to overflowing rivers and blocked drains, has led insurers to reconsider offering coverage, particularly for commercial properties and residential landlords, industry representatives noted.

The ABI emphasized the urgent need for reforms in the planning system, focusing on preventive measures to better protect the country against the impacts of climate change.

"Immediate government action is needed to address surface water flooding and to maintain flood investments and maintenance, which will help mitigate future flooding impacts," said Louise Clark, Policy Adviser at the ABI.

London was among the cities recently affected by flash floods following heavy summer rains, while several southeastern U.S. states were inundated by Tropical Storm Debby. These events serve as a stark reminder to insurers of the growing risks posed by climate change and urbanization.

The ABI also reported that insurer payouts in the second quarter of 2024 increased by 5% compared to the first quarter. Photo by UK Insurance Solutions Ltd - King Cross Road by Betty Longbottom, Wikimedia commons.