UK property insurance claims expected to hit record high for 2025

UK property insurance claims expected to hit record high for 2025

• UK property insurance claims are expected to hit £6.1 billion for 2025 – the highest payout on record;
• Claims specifically related to weather are likely to reach £1.6 billion, double the annual levels seen between 2017 and 2021;
• Weather claims set to make up 25% of the total amount paid out by UK property insurers in 2025;
• 84% of home insurance professionals surveyed by Deloitte say that climate change is a risk to their business.

Payouts relating to property damage in 2025 are expected to reach a new high of £6.1 billion, according to analysis of the UK insurance industry by Deloitte. 

Deloitte analysis shows that claims for the final quarter of 2025 (October to December) could total £1.5 billion which, when coupled with previously published industry data, will give a year end figure of £6.1 billion. This is a small increase on the actual payouts in 2024, but up to 50% higher than payouts recorded between 2021 and 2023.

For claims specifically related to weather (floods, storms, freezing, subsidence), Deloitte estimates the full amount paid out in 2025 is likely to reach £1.6 billion. This is more than double the annual levels seen between 2017 and 2021. This figure makes up 25% of the total amount that Deloitte expects UK property insurers to have paid out in 2025.

A recent Deloitte survey found that more than four in five (84%) home insurance professionals believe that climate change is a risk to their business.

Cherry Chan, insurance partner at Deloitte UK, said: “2025 is set to become the most expensive year on record for property insurers. For many insurers, the year has been defined by subsidence claims. Periods of drought last year combined with the extremely wet conditions of 2024 created a perfect storm for subsidence to affect more buildings than usual. With over a quarter of total property claims relating to weather, the industry continues to feel the impact of climate change.

“The UK has already weathered several storms and heavy snowfall in 2026, reinforcing the challenges that insurers will continue to face at the hands of climate change. As the final claims are counted for 2025, insurers will be assessing the impact of ongoing weather events on consumer’s premiums. With premiums expected to fall in 2026, but claims on the rise, the challenge for insurance executives will be to balance the needs of customers with the expectations of regulators, markets and shareholders.” 

Table: property related insurance claims, including those related to weather, from 2017-2025

*Final quarter of 2025 based on Deloitte analysis

-ENDS-

Notes to editors

About the data in this press release

Deloitte estimates on the total payouts for property insurance for the year 2025 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 2025 (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 2025. The survey was of 160 senior stakeholders working within the home insurance industry.

About Deloitte

In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms. 

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms. 
 
The information contained in this press release is correct at the time of going to press. 

For more information, please visit www.deloitte.co.uk.