Picture this: you're a policyholder who has just experienced the wrath of Mother Nature. Your property has been ravaged by extreme weather, leaving you in dire need of assistance from Action Insurance Repair and your insurance company. However, despite the well-documented surge in claims caused by bad weather, insurers seem ill-prepared to handle the onslaught.
In this article, we delve into the impact of extreme weather on the property insurance industry and explore what measures the industry is taking to adapt and improve its services.
A Twisted Weather Forecast
It's no secret that climate change is reshaping our world. Extreme weather events like hurricanes, floods, and wildfires have become more frequent and intense. These catastrophic events have a direct impact on the property insurance industry, as homeowners and businesses turn to their policies for assistance in times of need. Yet, insurers often seem caught off guard when the inevitable surges in claims occur.
Surges in Claims, Stagnant Response
Despite insurers' awareness of climatic incidents, increasingly accurate weather forecasts and the recurring pattern of increased claims during extreme weather events, they rarely anticipate the surge in advance. The same story repeats itself year after year: a storm hits, claims skyrocket, and policyholders are left frustrated by the lack of responsiveness from their insurers – we hear these stories first-hand. It's as if insurers are perpetually stuck in a reactive state, never proactively expanding their staffing capacity, or improving service quality to handle these predictable events.
The Absence of Penalties
Adding insult to injury is the lack of penalties or recourse for insurers who fail to prepare adequately. Policyholders are left with little option but to wait patiently, understanding that they are merely one of the many affected individuals or businesses seeking assistance. There is an inherent imbalance of power, where we and policyholders are at the mercy of insurers' sluggish response times before we can start work. This lack of accountability raises questions about insurers’ commitment to serving their customers and fulfilling the promises made in insurance policies.
Adapting to the Storm
In the face of these challenges, insurers are gradually recognising the need to adapt to the changing climate landscape and improve their services. Some forward-thinking companies are investing in sophisticated predictive modelling tools to better understand and anticipate weather patterns. Collaborations between insurers and climate scientists are becoming more common, to enhance risk assessment models, enabling insurers to price policies more accurately and offer tailored coverage for specific weather-related risks. By leveraging data and technology, insurers hope to proactively allocate resources and personnel to areas most likely to be affected by extreme weather events.
Empowering Policyholders
Policyholders could also play a more proactive role in driving change within the insurance industry, by demanding prompt and efficient claim handling from their insurers, along with transparency and accountability. They can put pressure on companies to adapt and improve their services by complaining when delivery is below par - especially during extreme weather events when policyholders are traditionally left out in the cold!
Formally complaining about poor service - and seeing this complaint all the way through to the Financial Ombudsman Service (FOS) if necessary – is the only way to force real change, with the FOS being the only organisation with any real authority over their conduct.
The impact of extreme weather on the property insurance industry is undeniable and the industry is slowly recognising the need for adaptation. But we at AIR believe more needs to be done to ensure policyholders receive timely and effective assistance when faced with the aftermath of extreme weather events - after all, facing and handling climate change is a collective responsibility.
If you or someone you know needs to get their life and property back to normal, contact us on 01254 665 333.