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If you’ve been keeping up with the news in recent years, it’s been hard not to notice the severe natural disasters that have occurred throughout the world. Many people believe that these natural disasters are down to climate change, and that they will increase in frequency and power as time progresses.

While many of these disasters happened internationally, we also saw major, catastrophic flooding right here in the UK. If you’ve decided to renew or purchase insurance this year, you may notice that your premiums have increased. This might even be the case if you were unaffected by any of these disasters.

In this article, we’ll explore the impact of recent natural disasters on the UK insurance industry. We’ll also take a look at how this might impact your particular insurance situation. If you want to understand your costs and save money, it’s important to be informed of what influences the price of your premiums!

Recent Disasters

A quick look at the landscape in 2017 provides a bleak picture for potential future natural disasters. Catastrophic floods and storms hit the USA, where many cities were severely damaged. Houston, Texas took the brunt of the damage with billions of dollars of lost property and damaged goods. In addition, multiple other hurricanes impacted other areas of the United States and devastated islands in the Caribbean.

Severe earthquakes in Mexico also caused serious damage to infrastructure and homes. And wildfires in California were even more prolific than usual.


Now while the UK has had its own problems with flooding, it’s clear that the brunt of the major natural disaster problems has occurred outside of the country. Regardless, the international nature of the modern insurance industry means that it impacts your insurance as well. Many of the large insurance companies have portfolios across the globe, meaning they are exposed in multiple regions.

When large costs occur outside of the UK, many insurance companies operating domestically feel strain because of foreign costs. It is estimated that the cost of natural disasters in 2017 amounted to around $100b for the insurance industry. This unexpected burden means that many insurance companies have had to increase their premiums up to 20 percent. While America has felt this the most, UK insurance policy owners may see their premium rise around 10 percent as well.

It may not seem fair, but it’s the only way the insurance industry can remain viable in times where they are overexposed.


At the end of the day, your priority when purchasing auto insurance, or any insurance, should be to save as much money as possible. With increases in premiums, it’s more important than ever to shop around and save money. Each insurance company will have been impacted differently by these events, and therefore will differ in the amount that they raise their premiums.

Don’t accept a raised premium if you believe you might be able to find something elsewhere at a more affordable rate. Especially if you yourself were unaffected by any insurance claims or problems in 2017.