Property payouts to cross £6bn for second year running

Successful property insurance claims in the UK are expected to reach a total of £6.115bn across 2025 – the highest yearly payout ever recorded in the sector.

This is according to a forecast from professional services firm Deloitte, released today (11 February 2026), which also indicated that weather-related property damage claims would total £1.559bn across the year.

The figure would make 2025 only the second year that the industry has paid out over £6bn in claims, following 2024’s total of £6.08bn. That year saw a remarkable climb in payouts, shattering the previous year’s record of £4.824bn.

Weather related claims are set to make up 25.5% of total payouts, up from 22.1% in 2024. In the last 10 years only 2022 saw a higher percentage of weather related claims, at 26.6%.

Continued challenges

Cherry Chan, insurance partner at Deloitte UK, said: “For many insurers, 2025 has been defined by subsidence claims. Periods of drought last year combined with the extremely wet conditions of 2024 created a perfect storm for subsidence to affect more buildings than usual.

“The UK has already weathered several storms and heavy snowfall in 2026, reinforcing the challenges that insurers will continue to face at the hands of climate change. As the final claims are counted for 2025, insurers will be assessing the impact of ongoing weather events on consumer’s premiums.

“With premiums expected to fall in 2026, but claims on the rise, the challenge for insurance executives will be to balance the needs of customers with the expectations of regulators, markets and shareholders.”