Building Insurance Rates Expected to Rise Following Blighten’s Impact

Published5. October 2025, 5:38 PM

Suisse: After Blitten, building insurance will cost more

The director general of the new Helvetia Basel group explains why property owners must prepare for an increase in insurance premiums.

Blatten’s landslide did not only upset a Valais village and the inhabitants of the region. It also marks a turning point for the whole Swiss insurance sector. Real estate owners must thus prepare for a significant increase in property insurance premiums in the coming years. This is what Fabian Rupprecht, director general of the future new Helvetia Basel group announces, in an interview with the “Nzz Am Sonntag”.

“Blten rocked our branch,” he notes. Now become more attentive, insurers will always refuse more to ensure houses located in red areas, at high risk. And “in the long term, bonuses will have to increase, there is no other solution,” he adds.

Natural damage: prices to be reassessed

For the Helvetia group, the cost of the landslide in Blatten is already in several tens of millions of francs, says Fabian Rupprecht. But if the most spectacular damage occurs in the mountains, it recalls that hail and floods also strike the cities. In this context, FINMA will soon have to increase the prices of insurance against natural damage, lowered a few years ago, he notes.

Earthquakes: a major risk not guaranteed

Earthquakes can cause even greater damage than landslides, but insurance against earthquakes is not compulsory in Switzerland. Fabian Rupprecht, however, notes an increase in voluntary subscriptions to such insurance, while criticizing the Federal Council project for conditional insurance in this area. In her opinion, “it would cost so much, but at the worst moment.”

According to the group’s CEO, the time for universal and cheap building insurance is over. Faced with the multiplication of natural disasters, the owners will not only have to pay more, but also accept that, according to their location, certain goods are simply unassocurable.

Claims treated with AI

Helvetia puts massively on artificial intelligence (AI) to transform its activity. “In a few years, the majority of simple claims will be treated automatically,” according to Fabian Rupprecht. The AI ​​will accelerate the payment of allowances, reduce administrative costs and improve the detection of fraud. However, this automation is accompanied by a massive job suppression: 500 positions should disappear by 2027. This as part of a saving plan of 200 million Swiss francs. However, the CEO ensures that employees will be trained in new professions, linked to data management and cybersecurity.

Unassocury cybersecurity

Cyberattacks are risks almost impossible to ensure today, underlines Fabian Rupprecht. Because data in this area is lacking and potential damage often exceeds the financial capacity of companies. In Switzerland, only SMEs can still be covered for such risks – provided you properly assess their vulnerabilities. “Many companies still think that they will not be targeted. They are mistaken, ”warns the CEO, calling for strengthening prevention rather than counting on total coverage.

Same bell of the boss of the Zurich Assurances

In the “Sonntagsblick” of the day, it is Mario Greco, the boss of the Zurich Assurance, who speaks on the multiplication of natural disasters. For him, the role of an insurer is to try to minimize the effects and damage. What the insurer does by advising his customers about prevention and how to mitigate the consequences of natural disasters. He also believes that in the future building insurance premiums will be higher in villages such as Blatn than in Zurich for example.

Also questioned about the threat of cyber attacks, Mario Greco believes that they constitute the “greatest challenge” that insurers will have to “deal with great caution”.

(Ellen Weigand)

what specific factors, beyond direct damage, are contributing to the rise in building insurance premiums following Storm Blighten?

Understanding the Surge in Home Insurance Costs

The recent passage of Storm Blighten across the UK has left a trail of damage, and sadly, homeowners can expect to see a corresponding increase in building insurance rates. This isn’t simply opportunistic pricing; it’s a direct response to the escalating risks and payouts insurers are facing.Understanding why these increases are happening, and what you can do about them, is crucial. We’ll break down the factors driving up home insurance premiums, explore regional variations, and offer advice on mitigating potential cost hikes.

The Direct Link Between Storm Damage and Insurance Premiums

Storm Blighten, characterized by record rainfall and sustained high winds, caused widespread flooding and structural damage. The Association of British Insurers (ABI) estimates initial claims will exceed £500 million, and this figure is highly likely to rise as more damage is discovered.

Here’s how this translates to higher premiums:

* Increased Reinsurance Costs: Insurers themselves purchase insurance (reinsurance) to cover large-scale events like Blighten. reinsurance premiums are now increasing, and these costs are passed on to policyholders.

* higher claims Payouts: The sheer volume of claims stemming from Blighten necessitates larger payouts, depleting insurer reserves.

* Risk Reassessment: Insurers are reassessing risk profiles across the country, especially in areas severely affected by the storm.This leads to adjusted building insurance quotes reflecting the heightened risk of future events.

* Inflation in Building Materials: The demand for building materials following Blighten has driven up costs for repairs, further impacting claim payouts and, consequently, premiums.

Regional Variations in Building Insurance Costs

The impact of Blighten wasn’t uniform across the UK. Areas experiencing the most severe flooding and wind damage will see the most meaningful increases in building insurance costs.

* High-Risk Postcodes: Postcodes in regions like the North West, Wales, and parts of Scotland are likely to face the steepest rises. Insurers are using increasingly granular data to assess risk at a postcode level.

* Coastal Areas: Coastal properties, already facing higher premiums due to erosion and storm surges, will likely see further increases.

* Floodplains: Properties located on floodplains are particularly vulnerable and will experience considerable premium hikes. Check your property’s flood risk using the Environment Agency’s flood maps.

* Areas with Older Housing Stock: Older buildings are often more susceptible to damage and may require more expensive repairs, contributing to higher home insurance costs.

What Factors Influence Your Building Insurance Quote?

Beyond the impact of Blighten, several factors determine your individual building insurance premium:

* Property Value: The rebuild cost of your home is a primary factor. Ensure your valuation is up-to-date.

* Construction type: The materials used to build your home (brick, stone, timber frame) affect the cost of repairs.

* Roof Condition: A well-maintained roof reduces the risk of damage.

* Security Features: Alarm systems, security lighting, and robust locks can lower your premium.

* Excess: Choosing a higher excess (the amount you pay towards a claim) will typically reduce your premium.

* Claims History: A history of previous claims can increase your premium.

Mitigating the Impact of Rising Insurance Rates: Practical Tips

While premium increases are unavoidable for many, there are steps you can take to minimize the impact:

1. Shop Around: Don’t automatically renew with your existing insurer. Compare quotes from multiple providers using comparison websites and self-reliant brokers.
2. Increase Your Excess: Consider increasing your excess to lower your premium, but ensure you can comfortably afford to pay it if you need to make a claim.
3. improve Home Security: Invest in security measures to reduce the risk of burglary and damage.
4. Maintain Your Property: Regular maintenance,such as roof repairs and gutter cleaning,can prevent costly damage.
5. Review Your Coverage: Ensure your policy accurately reflects your needs. Don’t pay for coverage you don’t require.
6. Consider a Specialist Insurer: If you live in a high-risk area, a specialist insurer may offer more competitive rates.
7. Flood protection Measures: Installing flood barriers or raising electrical systems can demonstrate proactive risk management and potentially lower premiums.

The Role of Government and Industry Initiatives

The government and insurance industry are exploring ways to address the affordability crisis in home insurance. Initiatives include:

* Flood Re: A joint initiative between the government and insurers to make flood insurance more affordable for homes at high risk of flooding.

* Building Regulations: Updates to building regulations to improve the resilience of new homes to extreme weather events.

* Investment in Flood Defenses: Continued investment in flood defenses to protect communities from flooding.

Case Study: The Impact on a Coastal Town

the town of Seaview, located on the East Anglian coast, experienced significant coastal erosion during Storm Blighten. Prior to the storm,the average building insurance cost for a three-bedroom house was £600 per year. Following Blighten, this