Weather-related claims are having a significant impact on property insurance premiums in Wales, as part of a broader trend across the UK
Storms Cause £352 Million in Damage
Increasing Payouts
The average cost of home insurance policies has increased substantially:
– Combined buildings and contents insurance premiums rose to £407 in Q3 2024, up 16% from the previous year.
– In Northern Ireland, average premiums surged by 53% to around £375 in 2024.
Weather-related claims have reached unprecedented levels:
– In 2023, weather-related damage claims totalled £573 million, a 36% increase from 2022.
– The first nine months of 2024 saw £4.1 billion in property claims, the highest on record for that period.
– For six consecutive quarters, weather-related claims exceeded £100 million.
Several weather events have contributed to the rise in claims:
– Storms Babet, Ciaran, and Debi in autumn 2023 caused £352 million in damage to homes.
– Claims for storm damage, heavy rain, and frozen pipes reached £136 million in Q3 2024.
– Subsidence claims increased by 61% in Q3 2024 compared to the previous year.
Insurers are adapting to these challenges:
– The industry paid out £13 million daily in 2023 to help homeowners and businesses with unexpected events[9].
– Insurers are paying out more in claims than they receive in premiums, with £1.18 paid out for every £1 received in 2023.
The trend of increasing premiums due to weather-related claims is expected to continue:
– Climate change is likely to exacerbate extreme weather events, potentially leading to more frequent and severe claims[10].
– Insurers may need to adjust pricing further to account for the increased frequency and cost of claims.
Homeowners in Wales should be prepared for potential increases in their insurance costs and consider taking steps to mitigate risks where possible.
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Weather-related claims in Wales have shown some notable differences compared to other UK regions:
Wales has experienced significant weather-related claims, in line with the broader UK trend:
– In 2023, weather-related damage claims across the UK reached £573 million, a 36% increase from 2022.
– For Wales specifically, storm damage claims in Q2 2024 amounted to £144 million, matching the UK-wide figure.
The impact on insurance premiums has been more pronounced in Wales:
– The average premium increase in Wales was 19% in 2024, compared to a 16% increase across the UK.
– This suggests that Welsh homeowners are facing slightly higher cost pressures due to weather-related claims.
Subsidence has become a growing concern, with Wales showing a higher incidence:
– In Q3 2024, Wales reported £66 million in subsidence claims, compared to £60 million for the UK average.
– This represents a 61% increase from Q3 2023 for Wales, indicating a more severe impact in the region.
Storm damage has been particularly severe in Wales:
– The Rhondda Cynon Taf region in South Wales declared a major incident during Storm Bert in late 2024, with 200-300 properties affected by flooding.
– Four landslips occurred in Merthyr Tydfil alone, leading to road closures and increased insurance claims.
Wales has experienced some of the highest rainfall totals:
– Treherbert, Tyn-Y-Waun in South Wales recorded 171.6mm of rainfall during Storm Bert, one of the highest measurements in the UK.
– This extreme rainfall has likely contributed to the higher incidence of weather-related claims in the region.
While Wales shares many trends with the rest of the UK in terms of increasing weather-related claims, the data suggests that the region is experiencing slightly more severe impacts in certain areas, particularly in terms of premium increases, subsidence claims, and localised storm damage. This underscores the need for targeted resilience measures and potentially specialised insurance considerations for Welsh properties.
Oakleafe Claims have represented policyholders and managed their insurance claims since before the First World War. We have vast expertise and experience in both domestic and commercial insurance claims with thousands of satisfied policyholders who have received their deserved insurance settlement. With no upfront fees required, our internal data shows that insurance claims managed by professional loss assessors like Oakleafe can expect a settlement up to 40% higher than claims managed by the policyholder.
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