43% Surge in UK Extreme Weather Events Surge Presents New Risks for Insurance Providers

Severe wind driving increase in extreme weather across the UK as insurers urged to leverage data to mitigate risk and build resilience

27th March 2025, London, UK: Extreme weather events in the UK have increased 43% in the past year, according to analysis from data consultancy, Sagacity. Analysing records from the European Severe Weather Database, the data shows severe weather events increasing three-fold since 2020 from 1,156 to 3,656 in 2024. This is raising concerns among insurers that more common and more damaging extreme weather is likely to continue.

The most significant surge in extreme weather events throughout 2024 came from severe wind gusts, which spiked 57% compared to 2023. This follows a five-year trend since 2020 which has seen severe wind incidents almost quadruple – from 875 to 3,427.

As storms, flooding, and other extreme weather become more frequent and intense, insurers must evolve to keep pace with escalating risks. 2024 saw numerous damaging storms, including storms Henk, Kathleen, Bert, Conall and Darragh. The Association of British Insurers estimates that insurers paid out a record £585 million for weather-related damage to people’s homes and possessions in 2024.

To remain sustainable, insurers should look to refine pricing strategies and leverage advanced data insights for more accurate weather predictions and risk management.

Dean Standing, Chief Revenue Officer at Sagacity says: “The UK has been battered by large scale storms which damaged thousands of homes, cars and other property – proving a nightmare for insurers. As extreme weather worsens, claims are going to rise, putting more pressure on insurers and their risk levels. Those who cannot modernise their risk strategies are setting themselves up for potential failure in an increasingly volatile climate.”

Sagacity says that leveraging both proprietary and third-party data is key to improving risk predictions, ensuring accurate pricing, and offering tailored support to at-risk customers. Key strategies include:

• Enabling usage-based and dynamic pricing to adjust premiums based on real-time, real-world data
• Using third-party satellite data to detect and predict severe weather patterns
• Alerting customers through localised risk alerts with guidance on preventative measures
• Leveraging data to cross-check weather reports and impacted areas to monitor and flag fraudulent damage claims
• Using real-time risk exposure tracking to assess how much coverage they need from reinsurers

“Building precise customer profiles using real-time data is essential for effective risk management,” Standing concludes. “Factors like location, property types, and infrastructure all play a role in better understanding customers’ individual risks – they must be taken into account to price policies responsibly. Regardless of whether you attribute the rising damage caused by the weather to climate change or lacking infrastructure, one thing is clear: insurers must be better prepared for the surge in claims caused by damaging weather.”

About Sagacity

Sagacity are the data intelligence people. Founded in 2005, they help companies with customers make more money, by digging into the data businesses already have and combining it with data, insight, and action to drive value. Trusted by over 350 brands across Utilities, Telecoms, Retail, Insurance and more, think of Sagacity as your data co-pilots. Clients typically see 5x returns within the first few months through an increase in number of customers, accurate billing, and higher debt collection rates.

About the European Severe Weather Database

The European Severe Weather Database (ESWD) is a database maintained by the European Severe Storm Laboratory (ESSL) that collects and provides detailed information on severe weather events across Europe. Data found on the database is used by meteorologists, researchers and weather enthusiasts to track and analyse extreme weather phenomena.