Flood Re: urgent action needed to combat accelerating flood risk

The UK’s Flood Re has warned that an estimated two million homes could become uninsurable in 30 years’ time without action to protect the UK’s housing stock.

It has called on government, insurers, and consumers to fully embrace flood resilience and resistance and continue to invest in flood defences and water management, 

The call came as it published its annual report & accounts which revealed that over a quarter of a million (265,826) policies were backed by the Scheme during the year, while the Build Back Better (BBB) Scheme gained the backing of the insurance market, with 63% committed to offering it as an option to the highest flood risk householders.

A focus on adaptation and resilience was supported by a Property Flood Resilience (PFR) consumer campaign, promotion of BBB, the advance of Flood Performance Certificates and the launch of Flood Re’s Transition Plan.

Flood Re also announced that Mark Hoban is to step down as chair after eight and a half years.

A reduced profit before tax of £110m (2022: £132m) for the year to the end of March 2023, reflected a broadly benign year for flood events and a planned reduction in income raised from the levy on insurers of 25% to £135m (2022: £180m).

The number of policies ceded to the scheme increased by 3.6% to 265,826, with gross written premiums received rising to £52m (2022: £46m). Eligible own funds under the Solvency II Directive also rose to £693m (£614m).

Andy Bord, (pic) CEO, Flood Re commented:  “Climate change is having and will continue to have a major impact on the UK with river, coastal and surface water flooding all on the rise. With over two million people across the UK already exposed to frequent flooding and the average cost of repairing a flooded home being in excess of £30,000, the time for action on adaptation to climate change is now.”

“Whilst government remains committed to investing in flood defences there needs to be as much focus, if not more, on driving forward adaptation. That is why we launched the Build Back Better Scheme, are driving forward on plans for Flood Performance Certificates and have made the creation of a Centre of Excellence as priorities in our Transition Plan.”