Unheralded Geospatial Intelligence Data Emerges as Key Combatant Against escalating Subsidence Issues
In the UK, the risk of subsidence is projected to increase significantly, especially in regions like the Oxford-Cambridge Arc, due to climate change trends towards hotter, drier summers and ongoing rapid housing development. This shift will likely make subsidence a significant structural and insurance challenge in the medium term.
Extended periods of wet weather can cause clay soils to expand, potentially causing ground shifts and harm to building foundations. Conversely, prolonged dry weather and high temperatures can cause clay soils to shrink and crack, leading to ground movement and structural damage. These trends are exacerbated by climate change-related shifts to hotter, drier summers and recurrent heatwaves.
For the Oxford-Cambridge Arc region, which falls within southern England where soil moisture deficits have become pronounced, subsidence risk is likely elevated. The region's soils often include clay types that are more prone to shrinkage and subsidence in dry conditions. Additionally, new housing developments in the Oxford-Cambridge Arc can amplify subsidence risk due to changes in water drainage patterns and the destabilization of clay soils.
Homeowners in the UK are already feeling the impact of the rising subsidence risk. They are paying an average of £318 more for their insurance due to the increased subsidence risk. Insurers are responding to the evolving risks of wind, flood, and subsidence, reflecting increasing costs associated with these climate-driven hazards.
Geospatial intelligence data is becoming a crucial tool for insurance providers in managing property risk, particularly for issues like subsidence that are highly sensitive to environmental changes and can be incredibly localized. Cloud-based Software As A Service (SaaS) can help insurers understand property risk, enabling them to make more informed decisions about coverage and premiums.
InsurTech is also being used to help insurers suss out property risk. Over 1 million homes in the UK are at risk of subsidence according to LexisNexis data, and this number is projected to increase. By 2050, an additional 1.2 million homes in England are projected to be at risk of subsidence.
Extreme weather, including long dry spells and sudden downpours, can also affect foundations in the UK. In Q3 2024, subsidence claims reached £66 million, a 61% increase compared to Q3 2023. This trend is expected to continue, with subsidence claims likely to rise as the climate changes and more homes are built on land prone to subsidence.
Homeowners affected by flooding or subsidence are paying significantly more for their home insurance. In the Oxford-Cambridge Arc, where the risk of subsidence is particularly high, this could be a significant burden. Housing estates built on land prone to flooding may also see an increase in related claims.
The unseasonal warmth currently being enjoyed in the UK follows a particularly wet winter that saw Southern England receive 153% of the average rainfall for the period 1991-2020. This highlights the unpredictable nature of the weather in the UK and the need for insurers to be vigilant in assessing property risk.
Go.Compare has reported an increase in flood and subsidence claims in the UK. As the risk of subsidence continues to rise, it is crucial for homeowners and insurers to be aware of the signs of subsidence and take steps to mitigate the risk. Planting trees too close to load-bearing walls can also contribute to subsidence issues, so careful planning is essential when landscaping a property.
In summary, the projection for subsidence risk in the UK, particularly in regions like the Oxford-Cambridge Arc, is for it to increase due to climate change trends towards hotter, drier summers and ongoing rapid housing development which can destabilize local soils. This will likely make subsidence a significant structural and insurance challenge in the medium term.
- The increase in subsidence risk due to climate change and rapid housing development poses a significant structural and insurance challenge, especially in regions like the Oxford-Cambridge Arc.
- As climate change trends towards hotter, drier summers and recurrent heatwaves, extreme weather events can further exacerbate the risk of subsidence, particularly in areas with clay soils.
- InsurTech and geospatial intelligence data are becoming crucial tools for insurers in managing property risk, particularly for issues like subsidence that are highly sensitive to environmental changes and can be incredibly localized.
- Homeowners in areas with high subsidence risk, such as the Oxford-Cambridge Arc, are paying more for their insurance, as insurers respond to the increasing costs associated with climate-driven hazards like subsidence.
- To mitigate the risk of subsidence, homeowners should be aware of the signs and take steps like careful planning when landscaping, avoiding planting trees too close to load-bearing walls, and being vigilant about potential structural damage caused by climate change and extreme weather events.
