Flood Management In The UK July 06


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Risk mapping, risk management and flood insurance in the UK

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  • Flood Management In The UK July 06

    1. 1. Working towards a solution: flood management strategies in the UK Jane Milne Head of Property and Creditor Leader, Climate Change
    2. 2. UK Flood Cover <ul><li>UK is relatively unique in offering flood cover as a standard feature of household insurance </li></ul><ul><li>Unlike much of Europe and worldwide, cover widely available to the UK’s 24m households </li></ul><ul><li>Typical premium is £330 per year </li></ul><ul><li>Typical flood claim is around £15,000 - £30,000 </li></ul>
    3. 3. UK Weather Damage Claims <ul><li>Weather risks are increasing at a rate of 2 – 4 % per year, overall </li></ul>
    4. 4. Exposures <ul><li>Around 10% of housing stock in flood risk areas (inland or coastal) </li></ul><ul><li>2m homes and 130,000 businesses in England in at risk areas, 470,000 at high risk </li></ul><ul><li>Major inland flooding would cost £1-2bn </li></ul><ul><li>Extreme tidal surge affecting London could cost up to £30bn </li></ul><ul><li>Cover dependent on continuing availability of catastrophe reinsurance </li></ul>
    5. 5. Climate Change and Flooding <ul><li>Increased winter rain 15 – 30 % </li></ul><ul><li>Increase in heavy rain up to 20 % </li></ul><ul><li>Increase in sea level up to 90 cm </li></ul><ul><li>Increase in storm surge by 120 cm </li></ul><ul><li>Annual average damages could increase from £1.5 bn to £22 bn </li></ul>Source: Foresight “Future Flooding”, April 2004
    6. 6. ABI Statement of Principles <ul><li>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 ) </li></ul><ul><li>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 </li></ul><ul><li>Use best efforts, on a case-by-case basis, with existing policyholders where no defences planned </li></ul>
    7. 7. What does it mean for Government? <ul><li>Sustain expenditure and target carefully </li></ul><ul><li>Use creative solutions </li></ul><ul><li>Strengthen and implement floodplain planning guidance fully </li></ul><ul><li>Improve risk maps and asset registers </li></ul><ul><li>Improve warning systems and emergency plans </li></ul><ul><li>Tackle sewer/urban flooding </li></ul>
    8. 8. <ul><li>Sustained expenditure of £570m annual on river and coastal flooding 2005-08 to protect 100,000 properties in England </li></ul><ul><li>Sewer flooding - £1bn for 2005-10 to help over 9000 properties at 10% annual probability </li></ul>Capital Investment in Flood Defences
    9. 9. Land use planning <ul><li>Government wants to increase housing stock in SE England </li></ul><ul><li>Around 100,000 of these will be in flood risk areas, adding 5% to national flood risk </li></ul><ul><li>But Government’s new guidance says flood risk areas should be avoided except in very limited circumstances </li></ul>
    10. 10. Land use planning <ul><li>Environment Agency is to become statutory consultee </li></ul><ul><li>Where advice is ignored Secretary of State will have right to call in </li></ul><ul><li>Insurers and mortgage providers back sustained objections by Environment Agency </li></ul>
    11. 11. What can homeowners do? <ul><li>Increase resistance and resilience of their properties to flood damage, perhaps with grants from Government or in partnership with their insurer </li></ul><ul><li>Take practical steps to reduce the cost of flood repairs and speed up recovery times </li></ul><ul><li>Use flood protection devices and flood warning systems, where appropriate </li></ul>
    12. 12. Offering support to customers
    13. 13. 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
    14. 14. Further information <ul><li>For further information on flooding and climate change issues or to download copies of our recent publications see </li></ul><ul><li>www.abi.org.uk/flooding or </li></ul><ul><li>www.abi.org.uk/climatechange </li></ul>