This article is by Ian Gibbs, National Technical Manager, Sedgwick Repair Solutions
Climate change is creating a vicious cycle. As extreme weather intensifies, increased flooding damages more homes and businesses. Traditional methods of restoring and repairing flood-damaged properties generate substantial carbon emissions, contributing to the climate crisis. According to the latest Environment Agency national flood risk assessment, 6.3 million properties in England are now at risk, with 4.6 million vulnerable to surface water flooding. By mid-century, that figure could reach 8 million – one in four homes. Each time a flood claim is processed, insurers face a crucial choice that most homeowners never see – whether to significantly strip out and repair or carefully restore what can be saved.
That decision has massive carbon consequences.
The replace-all problem
Traditionally, restoration contractors take an approach of removing large quantities of water or smoke-affected materials – such as plasterboard, insulation, flooring, and fixtures – which end up in landfill. New materials are then manufactured, transported, and installed. A similar approach is taken with the contents, which are deemed unsalvageable and replaced. The resultant carbon footprint is staggering – and in many cases, unnecessary.
Independent scientific testing reveals that many building materials can fully recover in situ when proper drying techniques are applied. The building structure and finishes are far more resilient than our default ‘strip and replace’ approach assumes, which makes the wholesale strip-out model both wasteful and outdated.
A solution exists
The sustainable alternative is proven, not theoretical. By threading sustainability into every stage of claims processing, insurers can reduce carbon emissions by 30% without compromising service quality or incurring long-term cost increases.
Rather than seeking one transformative solution, the approach focuses on the British Cycling-inspired ‘marginal gains’ philosophy, which is to make incremental improvements at every touchpoint in the process. For example, virtual assessments reduce unnecessary travel, remote monitoring cuts down on-site visits, and energy-efficient drying equipment saves on power consumption. Most importantly, restore-not-replace protocols preserve original building materials and the embodied carbon within them.
The result? Customers return home faster, costs go down, and carbon emissions are also significantly reduced.
Opportunities across the claims journey
Sustainability measures can be introduced throughout the entire claims process.
During initial assessment, virtual-first strategies and technical guidance help contractors adopt minimal strip-out approaches. When physical visits are necessary, optimising transport balances efficiency with carbon impact. Remote monitoring technology allows real-time oversight of the drying phase, reducing travel needs.
The biggest gains occur during restoration, where original structures are preserved. For materials that genuinely require replacement, such as plasterboard, insulation, and paint, low-carbon alternatives are increasingly available, although supply chains remain underdeveloped.
Contents items traditionally considered ‘beyond economic repair’ are finding new life through reuse programmes that create both carbon savings and social value.
It’s a long journey toward normalising sustainable choices, but the path forward is clear.
The measurement imperative
Success depends on robust carbon measurement. Baseline assessments aligned to Science Based Targets initiative (SBTi) standards, plus building-element level carbon values calculators, help identify high-impact carbon-saving opportunities.
Equally vital is cultural change. The transition to net-zero claims processing requires fundamental operational shifts delivered in partnership with contractors, suppliers, and other stakeholders across the value chain. And this must be built collaboratively.
Breaking the cycle
Climate change is driving more flooding, and our response matters. Breaking this cycle is more than environmentally responsible, it’s a necessity.
Forward-thinking insurers are already incorporating flood resilience measures in repairs, reducing both future claim risk and their carbon footprint. Those weaving sustainable practices – the ‘green thread’ – through their operations will lead the future carbon-conscious market.
The path to net-zero claims processing may seem daunting, but the marginal gains approach offers a practical starting point. Small improvements, systematically applied, create transformative change.
The question isn’t whether the insurance industry can afford to embrace sustainable claims processing, but can we afford not to.
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