2024 UK property insurance payouts to hit £5.5bn, highest since 2007: Deloitte

According to a new analysis by Deloitte, UK property insurance claims are expected to hit £5.5 billion for 2024, the highest payout since 2007, which was the year of the summer floods.

The claims for Q4 2024 could total £1.4 billion, which when coupled with previously published industry data, will give a year-end figure of £5.5 billion.

This is the highest level since 2007 when large parts of the UK were hit by flooding during a summer of torrential rain, and insured losses for flood claims were estimated at £3 billion.

Meanwhile, for 2024, claims specifically related to weather (floods, storms, freeze, subsidence) are likely to reach £1.2 billion, double the annual levels seen between 2017 and 2020, this figure makes up 22% of the overall £5.5 billion cited.

A Deloitte survey from November 2024 shows that 90% of home insurance professionals viewed climate change as a risk to their business. This figure rose from 82% in 2023, of those surveyed, 50% cited flooding as one of their biggest concerns.

James Rakow, Insurance Partner at Deloitte, said, “Our analysis and expectations show that 2024 will be the most expensive year for property insurers since the summer floods of 2007. With extreme weather events such as storms and flooding becoming more commonplace in the UK and beyond, insurers likely won’t be surprised by this.

“As the final claims for 2024 are counted, insurers will be assessing the impact of weather events during the final quarter and working out what the potential impact on their trading plans and consumers’ premiums will be.

“Weather-wise, 2025 has not got off to a great start. We’re less than two weeks into the year, and due in large part to flooding, insurers have already likely seen the levels of adverse weather claims that they would ordinarily expect for the whole month.

“Learnings from 2024 and early 2025 will show that insurers have tough choices to make, with weather events associated with climate change a real and present danger. Insurance executives will be working hard to balance the needs and expectations of customers, regulators, markets and shareholders.”

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