Working towards a solution: flood management strategies in the UK Jane Milne Head of Property and Creditor Leader, Climate Change

UK Flood Cover UK is relatively unique in offering flood cover as a standard feature of household insurance Unlike much of Europe and worldwide, cover widely available to the UK’s 24m households Typical premium is £330 per year Typical flood claim is around £15,000 - £30,000

UK is relatively unique in offering flood cover as a standard feature of household insurance

Unlike much of Europe and worldwide, cover widely available to the UK’s 24m households

Typical premium is £330 per year

Typical flood claim is around £15,000 - £30,000

UK Weather Damage Claims Weather risks are increasing at a rate of 2 – 4 % per year, overall

Weather risks are increasing at a rate of 2 – 4 % per year, overall

Exposures Around 10% of housing stock in flood risk areas (inland or coastal) 2m homes and 130,000 businesses in England in at risk areas, 470,000 at high risk Major inland flooding would cost £1-2bn Extreme tidal surge affecting London could cost up to £30bn Cover dependent on continuing availability of catastrophe reinsurance

Around 10% of housing stock in flood risk areas (inland or coastal)

2m homes and 130,000 businesses in England in at risk areas, 470,000 at high risk

Major inland flooding would cost £1-2bn

Extreme tidal surge affecting London could cost up to £30bn

Cover dependent on continuing availability of catastrophe reinsurance

Climate Change and Flooding Increased winter rain 15 – 30 % Increase in heavy rain up to 20 % Increase in sea level up to 90 cm Increase in storm surge by 120 cm Annual average damages could increase from £1.5 bn to £22 bn Source: Foresight “Future Flooding”, April 2004

Increased winter rain 15 – 30 %

Increase in heavy rain up to 20 %

Increase in sea level up to 90 cm

Increase in storm surge by 120 cm

Annual average damages could increase from £1.5 bn to £22 bn

ABI Statement of Principles Provide flood cover as standard feature under normal competitive market for those at less than 1.3% annual probability of flooding ( 1-in-75 yr ) Continue cover to existing policyholders in areas where defences will be in place in five years to reduce risk to less than 1.3% annual probability Use best efforts, on a case-by-case basis, with existing policyholders where no defences planned

Provide flood cover as standard feature under normal competitive market for those at less than 1.3% annual probability of flooding ( 1-in-75 yr )

Continue cover to existing policyholders in areas where defences will be in place in five years to reduce risk to less than 1.3% annual probability

Use best efforts, on a case-by-case basis, with existing policyholders where no defences planned

What does it mean for Government? Sustain expenditure and target carefully Use creative solutions Strengthen and implement floodplain planning guidance fully Improve risk maps and asset registers Improve warning systems and emergency plans Tackle sewer/urban flooding

Sustain expenditure and target carefully

Use creative solutions

Strengthen and implement floodplain planning guidance fully

Improve risk maps and asset registers

Improve warning systems and emergency plans

Tackle sewer/urban flooding

Sustained expenditure of £570m annual on river and coastal flooding 2005-08 to protect 100,000 properties in England Sewer flooding - £1bn for 2005-10 to help over 9000 properties at 10% annual probability Capital Investment in Flood Defences

Sustained expenditure of £570m annual on river and coastal flooding 2005-08 to protect 100,000 properties in England

Sewer flooding - £1bn for 2005-10 to help over 9000 properties at 10% annual probability

Land use planning Government wants to increase housing stock in SE England Around 100,000 of these will be in flood risk areas, adding 5% to national flood risk But Government’s new guidance says flood risk areas should be avoided except in very limited circumstances

Government wants to increase housing stock in SE England

Around 100,000 of these will be in flood risk areas, adding 5% to national flood risk

But Government’s new guidance says flood risk areas should be avoided except in very limited circumstances

Land use planning Environment Agency is to become statutory consultee Where advice is ignored Secretary of State will have right to call in Insurers and mortgage providers back sustained objections by Environment Agency

Environment Agency is to become statutory consultee

Where advice is ignored Secretary of State will have right to call in

Insurers and mortgage providers back sustained objections by Environment Agency

What can homeowners do? Increase resistance and resilience of their properties to flood damage, perhaps with grants from Government or in partnership with their insurer Take practical steps to reduce the cost of flood repairs and speed up recovery times Use flood protection devices and flood warning systems, where appropriate

Increase resistance and resilience of their properties to flood damage, perhaps with grants from Government or in partnership with their insurer

Take practical steps to reduce the cost of flood repairs and speed up recovery times

Use flood protection devices and flood warning systems, where appropriate

Offering support to customers

Integrated drainage plans Glasgow Flooding 30/7/02 - Case Study No 2 (22 Int) A C B 2000 m3 FPV Flood Area Volume 700 m3 STV 1 in 30 yr upgrade Piped Watercourse Flooded Area Overland Flow Overland Flow Overland Flow

Further information For further information on flooding and climate change issues or to download copies of our recent publications see www.abi.org.uk/flooding or www.abi.org.uk/climatechange

For further information on flooding and climate change issues or to download copies of our recent publications see

www.abi.org.uk/flooding or

www.abi.org.uk/climatechange