Insurers have called on the UK Government to act on the recommendations of Sir Michael Pitt’s report into the 2007 summer floods. Sir Michael’s report concluded that flood defences must be taken more seriously. The independent flood review comes after the floods of 2007 that left 13 dead and 44,600 homes flooded. Nearly 5,000 people in the UK are still in temporary accommodation.
Nick Starling, the ABI’s director of general insurance and health, said: “This report must not sit on the shelf. By highlighting how under-prepared we are for a major flood, it must be a catalyst for an overhaul in managing and adapting to the increasing flood threat.
“The Government must act now to develop a long-term flood strategy. This must focus on better co-ordination, a thorough reassessment of the flood risk from rivers, drainage and the sea, adequate investment and better public information on flooding. All this is crucial to ensure that flood insurance remains widely available and competitively-priced,” Mr Starling added.
Sir Michael’s review recommends that:
- Local authorities should create a definitive map of all drainage ditches and streams in their area, making clear who is responsible for maintaining them.
- A nerve centre should be set up jointly by the Met Office and the Environment Agency to pool information and issue more accurate flood warnings.
- A greater onus should be placed on utility companies to protect key infrastructure sites. Sir Michael said some had previously been "quite secretive" about their sites.
Sir Michael said most of the recommendations were “not expensive” and could be achieved within the government's existing £800 million-a-year flood defence budget for 2010 to 2011.
But Paul Nunn, head of exposure management at Lloyd’s, backs the ABI call that the £800 million due in 2010 should be brought forward to 2008 with a further £150 million to be spend on the maintenance backlog already identified by the UK’s National Audit Office.
Nunn said he is disappointed that the review did not back up insurers’ call for more funding. “While insured losses from the 2007 floods are estimated at around £3 billion, the Government has spent less than £100 million on post-flooding reinstatement. By continuing to provide property coverage for flood events the insurance industry is effectively picking up the tab instead of taxpayers.
“There needs to be more investment in flood defence and risk measurement now,” Nunn said. “And there needs to be better coordination between local authorities, the water companies and the Environment Agency.”
Bob Ward, director of public policy at catastrophe risk consultancy Risk Management Solutions (RMS), agreed: “The Pitt Report contains some powerful recommendations to improve both the measurement and management of flood risk, but to have an impact they need to be matched by a commitment from the Government and others to spend significantly more money.”
Ward said last year’s floods showed that the UK is not prepared to deal with current levels of flood risk, particularly from sudden heavy downpours that overwhelm drainage systems.
Nunn also warned that flood severity and frequency is increasing, partly as a result of climate change. “This is not simply about building defences to meet current levels of risk,” he said. “So increasing flood risk must be factored into the design of flood defences and the maintenance of drainage systems.”
