Key Points

  1. Howden's CEO Mike Dalby highlights the dangers of underinsurance, particularly in the face of changing weather patterns and rising construction costs.
  2. A recent survey found that 57% of respondents were underinsured, and insurers paid £585 million for weather-related damage in 2024.
  3. Professional advice can help close protection gaps and make informed decisions, particularly in the face of complex risks like cyber insurance and AI-generated information.

The Dangers of Underinsurance

As we move towards the end of the year, Howden's CEO Mike Dalby reflects on the dangers of underinsurance. Rising construction costs and changes in asset values can mean that policies arranged several years ago no longer provide the level of cover expected.

Howden's recent BCH survey found that 57% of respondents were underinsured. Changing weather patterns are making household risk harder to assess and easier to underestimate.

In 2022, Storms Dudley, Eunice and Franklin led to approximately 177,000 claims for damage to homes, businesses and vehicles, with payouts estimated at almost half a billion pounds, according to the ABI.

At a Glance

HowdenUK-based insurance company
Parent company of Howden's consumer division
Mike DalbyHowden's CEO
Author of the briefing
BCH survey57%
Percentage of respondents who were underinsured
ABI£585 million
Annual figure for weather-related damage payouts in 2024

Closing Protection Gaps with Professional Advice

Closing Protection Gaps with Professional Advice

Mike Dalby emphasizes the importance of understanding risks and making informed decisions, particularly in the face of underinsurance and changing weather patterns.

Howden works with several price-comparison websites to offer a fully digital quote-and-buy journey for life and health insurance.

However, Dalby believes that professional advice can add real value, particularly in complex cases like cyber insurance and AI-generated information.

Protecting Your Assets in a Changing World

For anyone uncertain about whether their protection still reflects their circumstances, a conversation with an adviser – online, by phone or in a local branch – can be a useful place to start.

The aim is not simply to arrange cover, but to help people make informed decisions and feel better prepared for the future.