Storms and Flooding Led to Record Insurance Claims in 2024

Insurers paid out £585 million for weather-related damages to homes and possessions last year, according to the Association of British Insurers (ABI). This figure represents the highest total since the ABI began collecting data in 2017. “Significant and consistent bad weather” is to blame for the record payouts, the ABI said.

The UK was impacted by significant rainfall last year. In fact, 10 counties, including Bedfordshire and Oxfordshire, experienced their wettest September on record in 2024, according to the Met Office. Moreover, the 2023-24 storm season included 12 named storms, the most since 2015-16. According to the Met Office, storms are becoming more frequent and intense due to the impact of climate change.

ABI’s Data in Detail

Insurance claims for weather-related damages to homes hit £146 million in the final quarter of 2024, a year-on-year increase of £17 million and the seventh consecutive quarter where weather-related claims exceeded £100 million. Damages from windstorms, flooding and frozen pipes surpassed 2022’s record and were £127 million higher than weather-related payouts in 2023, the ABI found.

Last year’s extreme weather also impacted businesses. Business interruption and weather-related damages to commercial properties led to insurance payouts of £102 million in the final quarter of 2024, a year-on-year increase of 16%.

Mark Shepherd, head of general insurance policy at the ABI, said, “Our latest data serves as a blunt reminder of the devastating damage that adverse weather can cause to people’s homes and businesses.”

The ABI and others are calling on the government to increase climate resiliency in planning decisions and building standards and improve flood defences. “Insurers are braced for these sorts of events at any time—but prevention is always better than cure,” said Shepherd.

The government recently pledged a £2.65 billion flood defence investment to protect more than 66,000 properties. However, according to an analysis by the re-insurance scheme Flood Re, the government would need to commit to spending at least £1 billion annually to mitigate the risks from future flooding.

In the meantime, individuals and organisations should review their flood resilience measures to protect their homes and businesses. Additionally, robust flood insurance cover is critical.

Contact us today for further guidance and insurance solutions.