Deloitte: 2024 property insurance payouts expected to hit highest level in almost two decades

Deloitte: 2024 property insurance payouts expected to hit highest level in almost two decades

• UK property insurance claims expected to hit £5.5 billion for 2024 – the highest payout since 2007, which was the year of the summer floods;
• Claims specifically related to weather (floods, storms, freeze, subsidence) are likely to reach £1.2 billion for 2024, double the annual levels seen between 2017 and 2020;
• Weather claims will make up 22% of the total amount paid out by UK property insurers in 2024;
• 90% of home insurance professionals surveyed by Deloitte say that climate change is a risk to their business.

Payouts relating to property damage in 2024 are expected hit their highest level in 17 years, according to analysis of the UK insurance industry by Deloitte.

Deloitte analysis shows that claims for the final quarter of 2024 (October – December) 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 swathes of the UK were hit by flooding during a summer of torrential rain, and insured losses for flood claims were estimated at £3 billion.

For claims specifically related to weather (floods, storms, freeze, subsidence) Deloitte estimates the full year payout in 2024 is likely to reach £1.2 billion. This is approximately double the annual levels seen between 2017 and 2020. This figure makes up 22% of the overall £5.5 billion that Deloitte expects UK property insurers will pay out in 2024.

Table: property related insurance claims, including those related to weather, from 2017-2024

The rising trend of weather-related claims underlines the threat that climate change poses to the home insurance industry. A Deloitte survey from November 2024 shows that 90% of home insurance professionals viewed climate change as a risk to their business, a figure that 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.”

-ENDS-

Notes to editor 
About the data in this press release

Deloitte estimates on the total payouts for property insurance for the year 2024 are based upon data held by the Association of British Insurers. Deloitte subscribes to this data and has published it by permission as part of its own communications materials.

The figures provided for the final quarter of 2024 (October, November, December) are based upon Deloitte’s analysis of this and other data.

Figures relating to the expectations of UK home insurers are based upon proprietary data held by Deloitte. This data was captured as part of Deloitte’s annual Home Insurance Seminar, which took place in November 2024. The survey was of 165 senior stakeholders across 59 different firms that work within the home insurance industry.