| Link(s): | Funding for flood defences crucial as the bill for bad-weather hits record quarterly high | ABI |
Context
Between January and April this year, ABI is reporting that insurers have faced claims for weather-related damage to people’s homes and possessions of over £200 million for the first time ever.
Key points to note and next actions
Claims for damage to homes from adverse weather totalled £226 million, £80 million (55%) more than the weather-related claims payouts in the previous quarter. These figures have prompted the ABI to make renewed calls for the Government to commit to adequate, long-term investment in flood defences within its upcoming Spending Review and publication of the 10 Year Infrastructure Strategy
These record payouts follow significant and consistent bad weather, including Storm Eowyn – which the Met Office described as the UK’s most powerful windstorm for over a decade.
The latest claims data from the ABI also reveals that in the first three months of 2025:
- A record £886 million was paid out in total for domestic property claims, up £145 million (20%) on Q1 2024. This includes damage for other perils such as fire, theft and subsidence.
- Bad weather wasn’t just a problem for homeowners, as ABI members paid out £109 million to businesses for weather-related damage and business interruption. This is an increase of £7 million (7%) on Q1 2024.
- The total cost of property claims for domestic and commercial buildings in Q1 2025 was £1.5 billion, up £170 million (13%) on Q1 2024.