UK Insurers Report Record Payouts Due to Climate-Related Storms

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UK insurers have reported a record £585 million ($740 million) in payouts for weather-related damage during 2024, attributed to a series of 12 named storms, the highest since the 2015-16 season. According to the Association of British Insurers, this figure exceeds the previous record set in 2022 by £77 million, and is £127 million higher than payouts in 2023.

The Met Office analysis indicates that climate breakdown has caused storms to become more frequent and intense, contributing to this unprecedented financial impact. Insurance premiums for combined building and contents coverage increased by £55 to an average of £395 in 2024. Mark Shepherd, head of general insurance policy at the ABI, emphasized the need for climate resilience in planning decisions and building standards to protect against future risks.

The UK government has pledged to increase flood defense spending to £2.65 billion over the next two years. However, the ABI is urging a commitment of at least £1 billion annually for flood defenses after 2026, citing significant cost savings associated with preventative measures.

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