Increased spending on flood defences is not enough to solve flooding problems

The Institute and Faculty of Actuaries (IFoA) has today released a report on the future of UK flood policy.  The report coincides with the release of the report today on ‘future flood prevention’ by the Environment, Food and Rural Affairs Committee.

The IFoA sets out three recommendations for government in the context of the Flood Re insurance scheme for homeowners in flood prone areas:

More needs to be done to ensure that flood defences are strengthened while the Flood Re scheme is in place. Flood Re is a temporary measure rather than a long term solution.  If high risk of flood persists, insurance will continue to be unaffordable for those living in high risk areas.

Increased spending on flood defences is only part of what is required to ensure homes and businesses are sufficiently equipped to cope with future flooding. More joined up thinking between government, environmental organisations, planners, homeowners and the insurance industry is necessary to help manage the risks associated with flooding.

Government should create a workable, proactive, long-term strategy for dealing with flood risk. This means dealing with the root causes of flooding.  A strategy needs to be implemented that recognises the changing nature of flooding and the impact of more frequent and extreme weather.

Colin Wilson, President of the IFoA, comments,

“Climate change and increased building on flood plains have made the UK flooding problems worse in recent years.  Extreme weather is increasingly common and more severe than previously.  These issues, combined with the UK’s lack of investment in flood defences, have created a perfect storm.

“The reinsurance scheme for homeowners, Flood Re, will be operational for 25 years.  The scheme will go some way to creating a breathing space for government to implement more resilient flood defences.  However increasing spending on flood defences is not enough.  Government must also use this time to put in place a proper strategy that incorporates all stakeholders to manage flood risk.  While flood risk remains high, homeowners will struggle to find affordable insurance after the Flood Re safety net is removed.”

~ENDS~

A copy of the report can be found here

Editorial notes:

About Flood Re

Flood Re is a scheme funded by a levy on insurers that reinsures their customers’ flood risk, allowing them to offer flood insurance to those homes at risk at a more affordable price. http://www.floodre.co.uk/