Home insurance claims across the UK are forecast to fall 12.4% for the entirety of 2020, according to HelloSafe.
A study by the insurance comparison platform examined the decline in home insurance claims during the March 23 to May 31 coronavirus lockdown and found the following drop rates for the period, along with the corresponding ‘savings’ estimates for the whole year:
Additionally, HelloSafe projected the estimated year-on-year slide in insurer expenses by claim types. These include water damage (12.99%), weather damage (11.45%), fire damage (11.77%), theft & burglary (13.3%), accidental damage (12.04%), domestic subsidence (15.63%), and other domestic claims (12.04%).
“It is not a surprise to see that home insurance claims have decreased in a significant way over 2020, with many Britons stuck at home during a year where very restrictive measures were taken to stop the COVID-19 pandemic,” commented HelloSafe chief executive Antoine Fruchard, while highlighting the idea of refunds.
“Indeed, as we observed with car or health insurance products, the payouts made by home insurers have gone down. However, until now, the industry has taken no decision to give back some of the savings made to the policyholders. This is a questionable position, when the impact of the economic crisis is just starting to strike most British households, and could last for years.”
Fruchard went on to assert that “the future of home insurance is still to create” amid the need for insurers to propose new solutions, in response to more policyholders now working remotely from their homes.