The UK insurance industry has reported a surge in property claims, with a record payout of £1.4bn ($1.8bn) in the second quarter, according to the Association of British Insurers (ABI).
This marks the highest quarterly figure since the ABI began gathering such data in 2017.
ABI also revealed an increase in the average payout per home insurance claim, which grew by 16% from the preceding quarter to £5,284.
Homeowners and businesses are facing substantial damage due to a series of weather catastrophes, including storms, heavy rainfall, and frozen pipes, leading to a consistent rise in claims.
Claims specifically for damages to homes totalled £144m during this period, surpassing £100m for the fifth consecutive quarter.
Business-related weather damage claims also remained high, reaching £81m.
This escalation in claims has coincided with an increase in the average cost of home insurance.
ABI reported that the average home insurance premium has risen to £396, a 6% increase from the previous quarter.
The average buildings-only policy now stands at £321, up by £23 (7%) while the average contents-only cover has increased by £5 (4%) to £137.
Despite the recent hikes, when considering the long-term trend and adjusting for inflation, the average premium for a combined policy is still 2.5% lower than in Q2 2017, at £406.
However, the average claim paid out has become 45% more costly compared to the same quarter in 2017, reflecting the growing impact of weather-related incidents on the insurance sector.
ABI policy adviser Louise Clark said: “Our latest figures demonstrate the devastating impact that adverse weather can have on people and their homes. That is why it is important that the government takes the opportunity to reform the planning system, to focus on prevention and resilience measures to help reduce our nation’s vulnerability to the effects of climate change.
“Urgent government action to tackle surface water flooding and maintain flood investments and maintenance will also help reduce the future impact of flooding.”
“UK property payouts hit record high of £1.4bn in Q2 due to weather events” was originally created and published by Life Insurance International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.