Heatwaves remind us that climate change resilience is crucial

The recent heatwaves in the UK serve as a stark reminder of how climate change is impacting our weather systems. 

2026 is set to be the hottest summer on record, and we’ve witnessed unprecedented events such as wildfires and droughts that were once confined to far warmer regions.

Large areas of our countryside, from the Isle of Wight in the south to the Cairngorms in Scotland, have been scorched by flames. In August, drought was declared across 70% of the country.

While flooding has long been a familiar risk in the UK, extreme heat is a threat we’ve yet to fully understand and mitigate. 

Heat risk

Heat is particularly deceptive because much of its damage isn’t immediately visible. 

For buildings, it can cause subsidence, which often requires extensive repairs. After decades of managing flood risk, we now need to shift our focus to heat risk and ensure buildings are constructed to be more resilient. 

Prevention has become a vital part of our service. Insurers possess extensive risk expertise and claims experience that can help customers make adaptations to avoid future losses. This information can also inform policymakers about where resilience investment is most needed.

Sarah Brown, Axa Insurance UK

Existing buildings require adaptation to keep heat out – something the UK is not traditionally accustomed to.

Under current weather conditions, half of all UK homes are at risk of overheating based on TM59 criteria, an industry-standard methodology for assessing overheating risk in residential and domestic buildings. 

The risk is particularly high in the south of England, with London being the hottest spot. The Midlands and Wales are also notably vulnerable.

Extreme heat also has significant implications for businesses. 

Business risk

Reduced productivity, transport disruptions and equipment failure can all hinder normal business operations. 

The green think-tank Verdant estimates that summer heatwaves could have already cost the UK economy more than £4bn in lost output to the end of July. 

If heatwaves continue to intensify at the same rate as in the last decade, Verdant suggests the annual cost could rise to more than £25bn by 2030.

Small and medium-sized businesses are often disproportionately impacted by climate change because they tend to be less resilient and have little visibility of their climate-related risks and how these could threaten their long-term viability.

Climate school

Recognising this vulnerability, Axa Insurance UK offers support to SMEs through modules from the global Axa Climate School, which have been specifically reframed to focus on adaptation. 

The programme explains why resilience and futureproofing are essential and equips SMEs with tools to assess and address their own risks, as well as risks to their customers and supply chains. 

Our Extreme Weather Risks Report, published in November 2024, combined data from public bodies like the Environment Agency with our own claims data to create a risk map highlighting areas of England most vulnerable to heat and flooding. 

We also used economic modelling to estimate the potential costs of future extreme weather events, alongside a public poll that explored key concerns, knowledge and perceptions.

Despite widespread concern about climate-related property damage, 52% of those surveyed said they felt unprepared to handle the impacts of flooding or extreme heat on their properties. 

Nearly half 48% admitted they had never checked whether their home insurance covered extreme heat effects.

There are practical steps homeowners can take, such as increasing shade and ventilation, but these measures have their limits. What’s needed now is a comprehensive national resilience programme. 

For the past couple of years, Axa Insurance UK has been calling for the government to appoint a Minister for Resilience to keep these issues at the forefront of policy and promote a more holistic approach to the systemic risks facing the UK.

The role of insurers is already evolving, and we’ll continue to adapt to better support our customers. Traditionally, insurance has been reactive, assessing, pricing and compensating after something goes wrong. 

Today, prevention has become a vital part of our service. Insurers possess extensive risk expertise and claims experience that can help customers make adaptations to avoid future losses. This information can also inform policymakers about where resilience investment is most needed.

Only by working together and tackling the challenges of climate change head-on can we build a safer, more resilient future for generations to come.