Context
The ABI has announced that its members paid out a record £4.6bn in property insurance claims during the first nine months of the year, according to its Property Insurance Premium Tracker. This follows an announcement at the end of July this year that Insurers paid out £1.6bn in claims during the second quarter of the year to help homeowners and businesses bounce back from unexpected events and costly disruptions. The Tracker is the most comprehensive in the UK, analysing 15.5 million policies sold a year. It is also the only collection that is based on the price customers pay for their cover rather than what they are quoted.
Key points to note and next actions
- Claims payouts for the year so far are £155 million (3%) higher compared to the same period last year, with the latest quarter seeing insurers paying out almost £1.5 billion. If the trend continues, insurers could be on track to pay out more in 2025 than any year on record.
- Breaking down the nine-month figures, adverse weather continues to heavily impact claims. Damage caused by bad weather totalled £936 million, £143 million more than the same period in 2024 and just over a fifth (21%) of the total £4.6 billion paid out in claims.
- Of the weather-related total, damage to people’s homes and possessions reached £596 million, up 21% on the previous year.