Flood Re calls for industry action to meet the challenge of Climate Change and Flooding.
Today Flood Re published its Annual Report & Accounts which revealed that:
- Flood Re continues to deliver on its availability and affordability objectives across the UK. A total of 218,090 policies were backed by Flood Re this year, a steady (11%) increase from 2020.
- These results provide a solid foundation to help manage the Scheme’s exit from the market by 2039. Additional Insurance industry action is needed to fully realise these aspirations – namely to embrace ‘Build Back Better’ after a flood, and so encourage many more homes to become resilient to future flooding.
- Looking forward to the 26th UN Climate Change Conference in Glasgow, Flood Re’s proposed measures to incentivise adaption, alongside the drive to net zero, should form a key part of the UK response to Climate Change.
Flood Re, the joint initiative between the UK insurance industry and the UK Government to promote the availability and affordability of flood insurance for eligible homes, has reported strong financial and operational performance for the year ending 31 March 2021, as it continues to deliver against its objectives.
In the year 2020-21, Flood Re provided cover for a total of 218,090 policies to homes across the UK – an 11% uplift from the previous financial year. Since its inception in 2016, more than 350,000 properties have now benefited from the Scheme.
Today, as it enters the next phase towards its exit from the market, Flood Re calls for continued collaboration from the insurance industry and Defra to ensure an effective flood insurance market by 2039.
The need to ‘Build Back Better’
The Committee on Climate Change’s independent report on the UK’s climate risk recognises that not only is the climate getting warmer and wetter but a 4 degree temperature rise is within plausible scenarios. With this the UK will face increasing rainfall intensity and continued sea level rise, while at the same time, more homes will inevitably be built on flood plains.
Flood Re’s Annual Report reiterates the need for practical solutions – including its ‘Build Back Better’ proposal – initially suggested in its Quinquennial Review in 2019.
To successfully protect homes from the devastating impacts of flooding and help mitigate its financial consequences, Flood Re believes that insurers and their supply chains must work together to effectively assess risk and set resilient strategies in place for their affected customers.
Andy Bord, CEO, Flood Re, said:
“This year will thrust climate change and its consequences even further into the spotlight. There is an urgent need for preventative action and measures to adapt to a warmer planet. The insurance industry must support the rollout of ‘Build Back Better’ to ensure that homes prone to flooding are adapted to protect them against the full impact of future flood damage.
“But it doesn’t stop there. The Government needs to promote planning policies that do not make the problem worse. The public needs to be made more aware of the risks of climate change and flooding to bring about the behavioural changes we need to see.”
Flood Re Scheme highlights:
- More than 350,000 properties have now benefited from the Scheme since launch in 2016, with four out of five homes with previous flood claims experiencing a price reduction of more than 50%.
- 98% of homes at risk of flooding are now able to access quotes from more than five of the insurance brands backed by the Scheme.
- Strong financial performance ensures the Scheme continues to operate with efficiency and responsiveness, despite a year of challenging weather patterns and the Covid-19 pandemic.