​In the latest Insurance Post Podcast, Vesanto said 6% of properties in Great Britain are at risk of subsidence, but that is going to increase to about 20% by 2080.

Moving forward, he said it was vital that insurers understand the risk of a property, rather than at a postcode, level to grasp how to respond to the greater risk of subsidence caused by climate change.

Vesanto said: “Last year, we had over £200m of subsidence losses off the back of the hottest year on record in the UK. We don’t have to look far to see what might be in the future. If you walk across the pond, in France, that same kind of heatwave caused over £2.5bn of subsidence losses.

“Understanding these risks is something insurers can do with precision underwriting. They need to start preparing for this today.”

Fellow podcast guest Laura Evans, chief actuary of Flood Re, said her organisation is working with policymakers on considerations for planning and permissions to ensure the property stock in the UK is resilient to climate change in the future.

As the 2023 United Nations Climate Change Conference – more commonly referred to as COP28 – kicks off in Expo City, Dubai, on 30 November, Glyn Brookes-Humphrey, director of regional operations at Woodgate & Clark, agreed that insurers are finally collaborating to make properties more resilient to flooding and subsidence to keep claims costs as low as possible.

The trio also examine how the industry is working together to make sure adequate cover is affordably available for the increased risk to property and livelihoods.

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