Last year’s heatwave has given insurers the shivers: Veronica Cowan explains why
Property insurers shuddered when last summer’s heatwave caused subsidence claims to soar in the third quarter of 2018, with costs rising from £14m to £64m. Clay-rich areas in south east England were most affected, although subsidence issues were also unearthed in the South West, Midlands, North West and North East. The full impact has not yet been felt, according to independent specialist Chris Cowen, client director at Auger, who predicts that the industry will be dealing with claims well into this year. ‘Although the surge tailed off in early 2019, not only were claims volumes greater but [it] proved more protracted than in previous surge years,’ he says, adding: ‘The next phase for insurers and loss adjusters will be dealing with cases that require mitigation, and the pressure will be mounting on other areas with limited resources, including arboriculturists, underpinning and building renovation contractors well into 2019 and beyond.’
Risky business
It is too early to tell whether conveyancing transactions could be adversely affected by this latest surge, but
