In 2024, insurers in Britain recorded a staggering £585 million in payouts for weather-related damages, surpassing the previous record set in 2022 by £77 million.

This figure represents an increase of £127 million compared to the payouts for weather-related claims in 2023.

In the last quarter of 2024 alone, insurers paid out £102 million to businesses for weather-related damage and business interruptions, marking a 7% increase from the previous quarter and a significant 16% increase from Q4 2023.

The Association of British Insurers (ABI) attributed these record payouts to a series of significant and consistent bad weather events, including 12 named storms during the 2023-24 storm season, the highest number since 2015-16.

The increase in payouts is largely attributed to the intensifying impacts of climate change, which have been linked to the rising frequency and severity of extreme weather events.

Analysis by the Met Office indicates that climate breakdown is contributing to the increased intensity of storms, which in turn is driving up insurance premiums globally.

In response to these trends, the average annual cost of combined building and contents home insurance in the UK rose by £55 (16%) to £395 in 2024 compared to the previous year.

Insurers are adjusting to the rising costs associated with climate-related damages, suggesting that this trend may continue in the future.

Concerns are mounting as more than 100,000 new homes are expected to be built in high-risk flood zones in England over the next five years, raising questions about climate risk.

Mark Shepherd from the ABI has emphasized the importance of avoiding construction in climate-risk areas and has called for stronger climate resilience measures in planning and building standards.

While the UK government has pledged to increase flood defense spending to £2.65 billion over the next two years, the ABI urges a commitment of at least £1 billion annually starting in 2026.

Research indicates that for every £1 invested in flood defense maintenance, £7 can be saved in capital costs, highlighting the economic benefits of proactive measures.