As climate change fuels costly weather events, insurance payouts skyrocket in the UK
Increased weather-related insurance claims have pushed UK payouts to a seven-year high as climate change worsens storm and flooding damage.
Jack Simpson reports for The Guardian.
In short:
- The Association of British Insurers (ABI) reports that insurance payouts reached £1.4bn in the second quarter of 2024, driven by weather-related claims amounting to £144m.
- The UK experienced significant weather events, including four named storms, leading to economic disruptions and impacting consumer spending.
- Last year, UK insurers paid out a record £573m in weather-related claims, which is £150m more to their payouts in 2022.
Key quote:
"Urgent government action to tackle surface-water flooding and maintain flood investments and maintenance will also help reduce the future impact of flooding."
— Louise Clark, policy adviser at the ABI.
Why this matters:
Rising insurance payouts highlight the increasing financial strain climate change places on both individuals and the economy. With severe weather events becoming more frequent, there's a growing need for policies focusing on prevention and resilience to safeguard communities and reduce economic disruption.
Related: Insurance woes increase as climate change impacts profitability
