Storm Eowyn has been predicted by insurers to be the single most expensive weather event since the century began with estimates as high as €300 million being suggested by industry insiders.

Storm Eowyn, a record breaking storm, hit Ireland and the UK on the 24 January 2025 and caused widespread damage as well as leaving many in the West of Ireland without power or water in their homes for several weeks.

As of mid February, Insurance Ireland had estimated that 23,903 claims have arisen as a result of the storm leading to a cost of €197.2 million and many claims had not yet been received, assessed, or settled leading to the higher total estimate of €300 million.

Of those 23,903 claims, the most costly relate to claims by businesses which were estimated at €97.3 million, followed closely by homeowners’ claims at €94.7 million, and motor policy claims at €5.1 million.

Extreme weather and frequent storms lead to higher payouts for insurers. Climate change is intensifying extreme weather such as snow and ice, heavy rainfall, flooding, and heatwaves which can all cause damage and destruction for homes and business premises. 

Where high insured losses occur, such as the estimated €300 million estimated losses as a result of Storm Eowyn, claims from multiple policyholders lead to large payouts for insurance companies who will seek to recoup their losses with higher premiums and/ or restrictions in cover.

Storm Eowyn may have been the costliest weather event this century but there have been others in recent years.

The freezing weather of January 2010 resulted in claims estimated at close to the €300 million of Storm Eowyn, and flooding in November 2009 and Storm Darwin in 2014 were two other costly weather events.

The high pay outs that result from climate change’s effect on our weather will certainly be reflected in higher premiums for home insurance and commercial property insurance customers. 

However, availability of insurance cover for home and commercial property insurance customers may also be restricted by new and emerging weather related risks.

A survey published by Deloitte in January of this year estimated the cost to Ireland’s insurance industry of dealing with the impact of extreme weather events at €1.5 billion over the next decade. 

Over one third of Ireland’s insurance experts surveyed expressed that cost could be above this figure with storms and flooding and the price and availability of flood risk cover perceived as the single biggest challenge to the industry in the coming years.

The impact of climate change and increasingly frequent extreme weather on the insurance industry, and correspondingly on insurance premiums and availability for customers has been under discussion in recent times.

Insurance industry representatives have had successive meetings with Minister Jennifer Carroll McNeill, and again with Minister Neale Richmond, her successor, the ministers with responsibility for the insurance industry.

Concerns of insurers about the viability of providing home and commercial insurance cover, more specifically flood cover, as a result of changing weather patterns and worsening climate change were expressed.

A Central Bank report has put the average annual cost of flooding at €101 million.

The Government has committed to spending €1.3 billion on flood relief schemes by 2030 with the expectation that when works are completed, insurance cover would be provided in those areas.

Insurance companies have called for collaboration between them and the Government when flood defence measures are being planned.

Cross industry collaboration to address issues arising from climate change and/ or extreme weather may also be a means to address restricted capacity and higher pricing for flood insurance such as the FloodRe scheme in the UK.

In short, the effects of worsening flooding and more frequent storms and weather events will almost certainly mean that you will pay a higher premium for your home or commercial property insurance.

Depending on where you live, it will likely also mean less options for where to purchase home or commercial property insurance as insurance companies will be increasingly less likely to provide flood cover to flood prone areas.

It may also mean that areas that were not traditionally considered prone to flooding will become so, with further restrictions on cover potentially likely.

This being said, insurers may be able to offer you home or business protection that specifically excludes flood risk or flood cover.

If the planned flood defence schemes do materialise, then it may become easier to protect your home or business following their construction in your area in the future.

Climate change leading to extreme weather is posing challenges for insurers, and their customers.

Speak to Compare Insurance about home or commercial property insurance today. We can get you excellent insurance cover for your home or business even in a challenging market.

We work with Central Bank regulated insurance providers to get you comprehensive cover at affordable prices.