General Insurance Article - Extremely hot weather sees subsidence claims rise


Sedgwick anticipates subsidence claims to increase between 300 – 400 per cent at its peak this August, comparative to or potentially exceeding the last surge event in 2018.

 James Preston, Technical Director at Sedgwick said: “Last week the MORECS hit its maximum level with 308 being recorded within square 161 and Sedgwick experienced an uplift of between 400 - 500% above the base line in new claim volumes, confirming, if we didn’t already know, that “Surge” conditions are now fully upon us.
 
 With the last “Surge” event being only 4 years ago the measures put in place at that time are still relevant and feasible and lessons learnt from that experience will help us again navigate through this very busy period. Digital technology proved to be a vital tool for many, back in 2018 and also through the challenging period of Covid restrictions. This same technology along with an enhanced process will allow Sedgwick and other similar service providers to upscale on very short notice to deal with increased claim volumes, via interactive video surveys.
 
 At present and as expected, high risk areas such as the south east and North London are experiencing high claim volumes but in contrast to 2018, claim numbers further North are lower as of yet and with us now entering what should be the wetter months of the year and trees starting to reduce their water uptake, this could be a small but welcomed relief.
 
 It is certainly a challenging time, and some would say more so than 2018 on the back of Brexit, Covid and now a cost of living crisis. Supply chains are certainly feeling the pinch and homeowners’ expectations have changed due to the uncertainty of recent times.
 
 However now is not the time to panic, Sedgwick and the industry are positioned as best as they can be in these challenging times to get through this “surge” with dedicated teams of people that should be acknowledged and commended for rising to the occasion time after time. We must deal with the “Surge” but not get tunnel vision and take our eye off the work in progress.
 
 The message to homeowners should be not to instantly push the “Subsidence” button. The appearance of minor cracking is not uncommon in houses that don’t have subsidence, and for the majority it does not represent a major structural problem. It is best to seek advice in the first instance and use a common sense approach.
 
 The message to us ALL should be to think about the wider issue. Climate change is not something I would claim to be an expert in by any stretch, however the frequent events of extreme weather I feel cannot be ignored and we need to play our part, whether that be utilising technology to reduce traffic flow or invest and implement alternative mitigation options, anything that helps reduce our CO2 output, is the way forward.”
  

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