As weather-related home insurance claims reach the highest quarterly figure on record, insurers hope a new climate financing bill could ease the increase in claims by providing much-needed flood defence funding.
Labour MP for Leeds East Richard Burgon tabled the “Climate Finance Fund (Fossil Fuels and Pollutions)” bill last month. This proposed a fund for financing flood defences and home insulation by imposing new levies on oil and gas firms, polluting industries and high-emission luxury activities.
Home insurers — who have called for the government to commit to long-term investment in flood defences — hope the bill could prevent steep increases in weather-related claims, which reached £226 million between January and April 2025.
“Flood defences currently save households £1.15bn each year by mitigating and protecting communities from damage,” said Jonathan Kassian, head of research at Flood Re, a government-subsidised insurer for homes in flood-risk areas.
The British government has invested £2.65bn in building and maintaining 1,000 flood defences, which protect over 66,000 properties and businesses.
However, according to Kassian, the rise in claims proves that the record increase in spending isn’t enough to mitigate flooding damage in vulnerable areas.
“[Parliament] brought some of the money to the table, but it’s not delivering the bang for the buck that it used to … adaptation is still taking a back seat, not being coordinated, not being prioritised.”
Flood Re advocates for further government action alongside the British Association of Insurers (ABI).
“One of the key actions we can take is to invest in the infrastructure that the UK needs to meet its net zero targets,” said Ben Howarth, head of sustainability and climate at ABI, making the case for flood defences being a key priority.
Howarth added that increased funding in flood defences would benefit the British infrastructure strategy. Insurers hope the bill will bring attention to the growing issue of insufficient flood defences. The second reading for the Private Members’ Bill is set for Wednesday, where it would require unanimous support to progress.
