Following a period of prolonged dry and fine weather, we have begun to see the typical onset of seasonal increases in Subsidence claims, with an increase in valid claims and the appearance of sudden and significant damage noted.
But will we enter true surge this year?
Recent surges in 2018 and 2022 have seen circa 400% increases in claim volumes and predications of a 1,000% increase have been mooted in the market for this year. Currently however, inbound volumes are symbolic of typical seasonal uplift and available data suggests that these slightly increased volumes are bias toward Yorkshire, Midlands and South West England, which aligns with our 2018 experience after a very dry spring / early summer.
Direct comparison with 2018 or 2022 should however be taken cautiously, as much has changed from an underwiring perspective. After suffering significant losses following recent event years, there is much wider availability of risk data, which is now central to Insurers modelling and pricing, resulting in broad changes to risk profiles. Further, the impact of Brexit and a global pandemic on price increases and the creation of a hard market, will undoubtedly have also changed the profile those claims that do arrive could take, which may be represented as a very different regional dynamic than we are used to or reduce in intensity due to increased excess, more robust policy terms and by those self-insuring.
Currently however, the environment is doing its bit and provides all the raw ingredients for elevated claim volumes, the intensity of which will only be truly measured in the coming weeks.
QuestGates is well placed to manage increased claim volumes through our flexible claims handling model, further supported by our structural engineering division, Structural Surveys, which operates across multiple sectors. Their capacity to deliver efficient subsidence inspections, through tightly controlled workflows and smart use of technology, ensures we remain responsive and resilient, whether market conditions are steady or in surge.