Insurance Industry’s Fake Claims Of Increasing Storm Damage Are Not Supported By Data
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.
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NOT A LOT OF PEOPLE KNOW THAT 
Hmmmmmm, ’what’s in a name’, and whois PwC UK ? Kinda says it all! Am I bothered, Just like looking thru’ a Keyhole, or Letterbox – wodda ya see? Just another horizon.
Price Waterhouse Cooper
One of the ‘big 3’ accountancy firms
Previously Price Waterhouse Coopers accountants etc.
Previously Price Waterhouse, and Coopers and Lybrand.
not “previously”…. The big accountancy firms have many tentacles and so whilst they still have a tentacle that does the accountancy work they also have the other tentacles that do other money making functions including consultancy.
Eli
Sent from my iPad
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According to their own statement PwC do not provide insurance so they will not be charging premiums. The cost of reinstatement will have increased considerably and the increased premiums are likely to be taking account of that.
From the table above 160 properties are said to have been flooded in 2023. This seems to be extremely ‘light’ bearing in mind what the media showed un in the last 3 months of that year.
As stated, the year ending dates are March, so late 2023 events will appear in the 2024 numbers in due course.
It seems the insurance industry is another route designated to impoverish us.
Scaremongering is simply the insurance industry’s marketing modus operandi.
Since insurance companies won’t renew insurance on properties that have previously been flooded I don’t see any reason why premiums should increase – quite the reverse…
Somebody called Khan telling lies…..how unusual.
this is what the Insurers in Canterbury have done. They increased fees to cover rising sea levels on the coastal areas when they are perfectly aware that the land is tilting downward into the sea.
Also receding cliffs are claimed to be the result of climate change further north from Canterbury ,I hear. Cliffs being the result of waves and river water undercutting rocks where it is able ,as far as I am aware. So problems with properties being built on these moving sites are being blamed on Climate change not unwise development of seaside areas.and lack of common sense where cliffs are concerned.
from Christchurch. Canterbury New Zealand
Insurance premium are increasing because the value of what is being claimed for is rising. With inflation being 10% for 2+ years, I would expect every new-for-old policy to have a 20% rise.
Flood insurance is a complex issue. Because certain properties are likely to flood due to position, insurers do not want to insure them for obvious reasons. Hence there is government and trade intervention in the form of Flood Re – A flood re-insurance scheme. … a body that will undertake the non standard flood risks where the continued availability of cover is determined to be necessary.
Notwithstanding this, clearly houses built on flood plains will be at higher risk and the increase in these new developments over recent years which should show a higher exposure to flood risks is not reflected in the figures provided and so indicate that the risk due to “climate change” is actually reducing.