"The escalating pattern in fire-related claims, particularly fuelled by lithium battery-powered devices, is modelling as the capital’s fastest-growing fire risk."
- Alison Williams, Managing Director at Prestige Underwriting
Despite a substantial 63% reduction in domestic fires across the UK since 2007, Prestige Underwriting has found the costs associated with fire-related claims continue to rise. In 2007, the average claim cost £6,583 but it now sits over £24k.
In 2022, AXA UK also warned insurers of the growing fire risks associated with electric bikes and scooters with lithium-ion batteries when overcharged or exposed to extreme temperatures. At the time, the insurer had covered almost £500k in losses on two claims involving lithium batteries but expected the frequency and cost to grow “exponentially” as these devices became more popular.
AXA claimed that recent data showed that these fires were predominately occurring in residential buildings. “It’s incredibly concerning that we are continuing to see a rise in incidents involving e-bikes and e-scooters. When these batteries and chargers fail, they do so with ferocity and because the fires develop so rapidly the situation can quickly become incredibly serious,” said Dougie Barnett, AXA Commercial Director of Customer Risk Management.
READ MORE: AXA UK issues fire risk warning amidst £500,000 insurance loss on electric bikes and scooters
“The escalating pattern in fire-related claims, particularly fuelled by lithium battery-powered devices, is modelling as the capital’s fastest-growing fire risk, and demands a collaborative approach to solve,” explained Alison Williams, Managing Director at Prestige Underwriting.
She’s urging manufacturers to work with insurers to “help consumers, and for us to work together to implement preventive measures as well as ensure the safety of these widely used devices.”
