19-05-2017

When it comes to considering aspects that affect your insurance premiums, most people will think about the level of cover or perhaps any previous claims. However, a new report claims that climate change could be having a huge influence on insurance very soon.

Expect an Increase of Storm Damage Claims

According to the Association of British Insurers (ABI), people should be preparing for a barrage of bad weather and costly insurance losses as a result of climate change.

Research conducted by AIR Worldwide for the ABI claims that if temperatures rise by just a few degrees there could be an increase of up to 25% on insurance losses due to high winds. The predictions claim Northern Ireland, Northern England and the Midlands could be the worst affected.

However, it's not just the severity of these storms that is the issue, but the frequency too. Five of the six wettest years on record in the UK have happened since 2000 and rainfall events that were once one in a century are now likely to happen every 80 years.

Furthermore, a global network of insurance industry organisations, ClimateWise, has found that the difference between the costs of natural disasters and the amount of insured has quadrupled to £100 billion (£79 billion) since the 1980s.

What Does This Mean for You?

With climate change, flooding and storm damage is becoming increasingly common. As a result, insurers are paying out more money and are having to increase policy prices in order to recoup the costs. That means increasingly expensive insurance cover for you.

Despite this, without the appropriate cover you could find yourself considerably out of pocket should your business be hit.

Matt Cullen, Head of Strategy at the ABI, said:

"Severe storms result in claims costing billions of pounds. The likelihood of these claims increasing in the future is something the insurance industry, and society, need to start preparing for now,"

"Planners and builders should be aware of the need for more wind-resistant construction in specific areas of the country if claims are to be kept to a minimum and residents spared the distress and expense of higher levels of wind damage," Cullen added.

Get the Right Cover at a Price That Works for You

So, we may be in for some stormy weather, but that doesn't mean it should cause turbulence for your business. Build and compare insurance quotes online today to ensure you have the correct level of cover at a price that won't blow your budget.