Subsidence claims in 2022 after the heatwave have been the highest since 2006 with expected payouts totalling £219m.

Read the full Insurance Age article here.

UK subsidence claims increased by 140% in September 2022 (source: Allianz Commercial) due to adverse soil conditions brought on by a hot/dry summer and drainage leaks. Subsidence is a complex risk resulting in lengthy claim resolutions.

(Article from Insurance Business UK - October 2022)

"The UK has been experiencing the hottest summer since 1976 – the fifth driest on record – leading to the highest levels of subsidence claims over the last 20 years. Fortunately, weather risk management provider EuroTempest has found that the surge in subsidence claims will likely revert to its normal levels for the rest of this year.

The high rainfall levels recorded in mid-August, along with shorter daylight and lower temperatures, have been easing dry ground conditions that often result in subsidence. However, EuroTempest noted that the longer-term forecasts don’t necessarily promise more rainfall in the later months."

(Insurance Business UK - September 2022)

"The Financial Conduct Authority has delivered its recommendations and potential remedies to reform the multi-occupancy buildings insurance market including a cross industry pool and lowering commissions.

In January Michael Gove, then the Secretary of State for Levelling Up, Housing and Communities, called on the FCA to review the insurance market for multiple-occupancy residential buildings."

(Insurance Age - September 2022)

"The Financial Conduct Authority (FCA) is making headway in its review of the way the market for multi-occupancy buildings insurance operates, as indicated in the regulator’s update to Secretary of State for Levelling Up, Housing & Communities Michael Gove.

In the FCA’s letter to the MP, the watchdog said its work over the past three months has focussed on gathering data and engaging with insurers and intermediaries to better understand their approach to pricing; considering the drivers of harm which may be impacting leaseholders; and developing initial options for ways the FCA could address any harms identified..."

(Insurance Business UK - May 2022)

“Sedgwick’s newest report on building repair costs in the UK reveals how the COVID-19 pandemic exacerbated issues the sector was already experiencing even before the coronavirus hit.

According to the firm’s Q1 UK building repair cost review, there was a 5% increase in repair costs during the period. Sedgwick noted that during the quarter, many manufacturers operated at reduced output as a result of the pandemic. The report also suggests that cost increases could continue to rise to 7% by the end of 2021."

(Insurance Business UK - September 2021)