Climate Biennial Exploratory Scenarios (CBES) report response

May 30, 2022

The Bank of England has published its CBES (“Climate Biennial Exploratory Scenarios”) report which assesses the financial risks resulting from climate change.

In light of Flood Re’s exit from the market in 2039 both Banks and insurers highlighted the need for urgent action to improve the UK’s overall flood resilience, including civil flood defence spending (which provides protection to flood risk communities valued at £568 million a year¹), property flood resilience take-up and financing, planning/development and consumer understanding of their flood risk.

A number of banks also flagged Flood Performance Certificates as a key tool for improving consumer awareness of flood risk. Supported by Flood and modelled on Energy Performance Certificates, they would provide prospective homeowners with a clear overview of the flood risk posed to a property, acting as a catalyst to encourage them to make changes so it is more resilient to flooding.

Andy Bord, CEO, Flood Re, comments:

“The findings of the Bank of England’s report are yet another stark reminder of the urgent need to improve our planning  system to adapt to the growing flood risk. We cannot afford to be complacent or ignore the issue of climate change.

“We are urging Michael Gove to use the once-in-a-generation opportunity of the Levelling-Up Bill to ensure we have a planning system that is fit for purpose. One with the capacity and guidance to take into account not only the climate of today, but also of the future. Importantly, Government must work in collaboration with insurers, householders and communities to introduce a package of measures that, together, will help reduce and adapt to flood risk.

“We have just 17 years left before Flood Re transitions out of the market. There is no time to waste.”

Flood Re improves the affordability and availability of flood insurance, but will exit from the market in 2039. Before then it recommends:

  • Building new homes to flood resilient standards where needed;
  • Increasing the uptake of resilience measures for those homes already at risk through Build Back Better provisions;
  • Ensuring funds are set aside to not only build new, but maintain existing, flood defences;
  • Introducing Flood Performance Certificates that highlight a property’s flood risk at point of sale.

In April 2022 Flood Re launched a world first ‘Build Back Better’ scheme, designed to ensure homes are more resilient against future flooding.

Participating home insurers are now beginning to offer customers access to reimbursement costs of up to £10,000, over and above work to repair damage and loss caused by a flood. The funds will pay for the installation of flood resilience measures (such as flood doors, air bricks etc) that will reduce the impact of future flooding helping the United Kingdom to become more resilient to the changing climate, enabling householders to return to their homes sooner following a flood providing vital peace of mind.

The initial participating insurers are:

  • Ageas
  • Aviva
  • NFU Mutual
  • Lloyds Banking Group (Bank of Scotland, Halifax and Lloyds Bank home insurance products)
  • LV= General Insurance


¹ ABI and Flood Re joint report, 2021: