By Paul Homewood
Climate change could push up home insurance costs by up to 20pc next year, according to the UK’s biggest accountancy firm.
Mohammad Khan, head of general insurance at PwC UK, said the increase in the number and severity of weather events means that insurers will need to increase the prices charged to consumers in order to cover the rising cost of claims.
“We are having weather events more often and they are more severe. You can call it climate change or not but that is a fact and insurers have to factor that into their pricing. That is why premiums are going up,” Mr Khan said.
https://www.telegraph.co.uk/money/property/climate-change-push-up-home-insurance-bills-20pc/
Mr Khan is telling lies to you.
It’s strange that his industry did not cut premiums last year, following just two named storms.
But what does the long term data tell us?
The Environment Agency collate figures for the number of properties flooded each year in England in major events.
A couple of years ago they sent me this table:
Since 2011 they have published annual reviews here, though 2016/17 is missing. Annual figures are recorded for the year to March, so the last numbers are for y/e March 2023.
I have tabulated the numbers for each year, along with the original table:
It is plainly untrue that floods have been affecting more properties in recent years. There are some years with high totals and others with low, but no obvious pattern.
The Environment Agency included Wales until 2013, so those early numbers might be slightly overstated. However the EA table only included events where more than 250 properties were flooded, whereas since 2011/12 this restriction does not apply. Last year, for instance, the total was only 160, which would not have been included under the previous criteria.
In short, the two factors tend to cancel out.
This year look like being slightly higher than the last few years, maybe around 3000, but still well within the normal bounds of variability. The number will certainly be much less than some of those earlier years.
As with every hyped story, the insurance will double down to use it as an excuse to raise premiums.
via NOT A LOT OF PEOPLE KNOW THAT
January 31, 2024 at 08:24AM
Iowa Climate Science Education 