Insurers paid out £4.86bn to businesses and home owners in 2023, a 19 per cent rise, as storm-related claims hit record highs, the Association of British Insurers (ABI) said.

Weather-related home damage claims rose 36 per cent to £573m, with homes battered by a succession of storms last autumn including Babet, Ciaran and Debi, the ABI said.

The weather total includes flood damage as well as burst pipes in freezing temperatures, which accounted for £153m, mainly at the beginning of 2023 at the tail end of a cold winter.

The average weather-related payout was approaching £5,000 in 2023 compared with a little over £3,000 in 2022.

Homeowners’ storm damage claims, including those for high winds, totalled £133m, with flooding adding £286m. A further £153m of weather claims came from burst pipes, most of which happened in the first three months of 2023 at the tail end of a cold winter.

The average weather-related payout for home insurance last year was approaching £5,000, at £4,916. This was a jump compared with 2022, when the figure was £3,077.

Weather damage was not just a problem for homeowners, with businesses incurring £443m in weather claims in 2023. The average weather-related payout for businesses last year was £18,542, jumping from £12,612 in 2022.

Louise Clark, of the ABI said: “Extreme weather events may not feel so rare as they used to as we grapple with a changing climate. Insurers continue to be there for affected homeowners, with payouts hitting record levels after a particularly difficult autumn and winter with seemingly countless storms, from Agnes onwards leading to significant flooding.

“While insurance will continue to protect homeowners and businesses, we can’t afford to lose momentum on our flood defence programme.”

“We continue to press the government for further investment in flood defence and maintenance, as well as calling for changes to the planning system to discourage building where flooding might be more likely,” Ms Clark said.

The average UK home insurance premium rose 13 per cent year on year in the fourth quarter of 2023, recent data from the ABI showed.

Insurance companies worldwide are facing higher claims from natural catastrophes, industry sources say, which they attribute to the effects of climate change and to a rise in building in areas exposed to extreme weather.

Winter storms in northwestern Europe in early 2023 led to insured losses of more than $4bn, above the previous 10-year average of $2.5bn, according to Swiss Re.