The outbreak of Storm Bert in November 2024 has had a widespread impact in the UK and could make it even harder for people living in areas vulnerable to bad weather to get insurance. The storm has impacted more than 500 houses in England and Wales and could make insurers more reluctant to insure houses in certain areas.
GlobalData’s 2024 Emerging Trends Insurance Consumer Survey found that 6.2% of UK home insurance policyholders had previously been denied a policy. The survey also found that of those people, 71.0% were rejected because of the location of their property—for instance, coastal or close to a riverbed. This suggests that it is becoming an issue for people living in areas at a higher risk of flooding.
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A lack of accurate weather forecasting and prevention measures has in part been blamed for the level of damage caused by Storm Bert. That is difficult for insurers and individual customers to combat. However, smart devices may help customers receive quicker payouts or be aware of the scale of damage if they are away. GlobalData’s survey found that 61.3% of consumers in the UK believed a device that triggered an automated payout of a pre-set amount linked to a severe weather event was either desirable (42.4%) or very desirable (18.9%). Furthermore, 64.9% believed that alerts from their insurer on upcoming severe weather events were desirable (48.7%) or very desirable (16.2%). This emphasises that more information here from insurers would be welcomed.
This also highlights the importance of receiving funds quickly and without the stress of a claims process for people in a situation, such as a flood, where they need to pay for immediate repairs. Figures from GlobalData show that while the level of people being rejected home insurance due to being at high risk of floods might be relatively low now, it is something that could rise with an increase in severe weather events. It also shows that rejections are largely due to people living in an area at a higher risk of flooding. Insurers and consumers can work together to utilise smart devices to help prevent or mitigate the impact of flooding, though that is likely to be expensive for consumers.
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