A new report published by reinsurance scheme Flood Re has found the investment in flood defences has saved UK households £1.15bn in annual damage. It estimates without the current levels of flood defences the cost of losses could be as much as 2.8 times higher than it currently is.
Flood risk modelling company Fathom was commissioned by Flood Re to understand the impact of flood defences on the cost of remediation. It found one in four properties are at risk of flooding; and with six of the wettest years on record having occurred since 1998, insurance payouts have topped £570m.
The research also found the figure saved by having flood defences could be over £2bn once you take into account damage to businesses, industry and agriculture, and costs associated with alternative accommodation.
Flooding is the UK’s most significant natural disaster risk, and the changing climate will continue to exacerbate the risk with the number of properties vulnerable to river and coastal flooding rising 27% by 2069 – from 2.4 million to 3.1 million. An estimated £1bn a year is needed in long-term flood defence investment to tackle the issue says Dermot Kehoe, Director of Communications and Transition, Flood Re
“The UK needs long-term flood defence investment of at least £1 billion a year to ensure we protect our homes and businesses from the devastation flooding brings. We must continue to mitigate the damage caused by flooding to ensure the insurance market has the ability to provide affordable cover to those at risk.
“Flood Re remains committed to working with Government, insurers and communities to drive forward flood resilience. By prioritising resilience alongside protection, we can build a future where homes, businesses and local economies are not just defended against flooding, but prepared to withstand and recover from it.”
Hannah Gurga, Director General, Association of British Insurers, added:
“Insurers continue to be at the forefront of climate change, paying out a record £585 million in claims last year to help households recover from extreme weather events. If we’re going to protect communities across the country with climate-resilient properties, we must shift from reactive and remedial action to a greater focus on prevention. Adequate and long-term Government investment in maintaining and strengthening our flood defences is essential and we hope to see the Government commit to this within its Spending Review.”
Dr Oliver Wing, Chief Scientific Officer, Fathom, concluded:
“The value of flood defences to UK households is unequivocal, saving them more than £1bn combined each year on average and up to £13bn during very severe floods. As our nation’s infrastructure ages, rebuild costs balloon, and climate change fuels ever more intense flood events, funding the maintenance and expansion of the UK’s flood protection systems has never been more critical.”
