Tackling the flood threat
The Association of British Insurers' Justin Jacobs says no further proof is needed that flood management must be a priority for the UK. He identifies gaps in the government's proposed legislation to safeguard communities and the economy from the devastating impact of the more severe and frequent floods that the country can expect
Its timing was as ironic as it was important. Hours after the publication in December 2009 of the long-awaited government's Flood and Water Management Bill, parts of North West England were hit by the worst floods in living memory. The trauma and tragedy of the events focusing around Cockermouth provided dramatic proof that an overhaul in managing the UK's rising flood risk was needed. Not that further proof was needed. Better flood management must be a priority for government if we are to safeguard communities and the economy from the devastating impact of the more severe and frequently-occurring floods that we can expect to see in the future.
Why better management of flood risk is needed
If anyone is in any doubt about the rising flood risk, then consider the evidence. One in six properties in England is at risk of flooding. Around 500,000 of these are at significant risk. The danger is not just from rivers. The predicted rise in sea levels, especially down the east coast, will put many more properties at risk. And the risk of surface water flooding, due to drainage systems that are often woefully in need of overhaul to cope with modern weather problems, further increases the problem.
The 2007 summer floods highlighted the shortcomings of flood management: a lack of accountability and coordination between the (too many) different agencies involved; the lack of a true understanding of the full extent of the flood risk from rivers, the sea and surface water, and inappropriate building in flood-vulnerable areas.
What needs to be done
The Association of British Insurers (ABI) believes that the Flood and Water Management Bill must form the basis of a much needed overhaul of how we better manage the rising flood threat. The Bill forms part of the ABI's flood agreement with the government of July 2008, which commits insurers to ensure that flood insurance remains as widely available as possible until 2013. By then we envisage that the system of flood management will encourage a thriving and competitive market for flood insurance.
There is much to welcome in the Bill. It puts in place a clear framework identifying accountabilities for managing flood risk. We are pleased that the Environment Agency will have a clear national overview role, and that Local Authorities will have clear responsibility for identifying and tackling surface water flooding.
However, there are gaps in the Bill that need to be addressed:
• We want to see the Bill set legally binding targets for reducing the number of properties at risk of flooding, and a requirement of the Environment Agency to report against these.
• We need to empower local communities to hold their Local Authority to account to ensure that they are delivering on their local flood risk management plans. Otherwise, the local community may only be aware that their local authority is not managing flood risk effectively when they are flooded. We recommend that an independent body has responsibility for auditing Local Authorities' performance against flood risk management plans, and making this information publicly available. The Environment Agency is best placed to do this.
• The Environment Agency and Local Authorities should ensure that all homes and businesses that are at flood risk, and whom they do not expect to be able to protect to below significant flood risk levels, are aware of the significant flood risk they face and protection options available. The Bill should empower Local Authorities to provide and coordinate free property flood surveys, and provide support for homeowners and businesses willing to modify their property to make them more resistant or resilient to flooding.
• The Bill needs to ensure that sufficient funding sources are available to finance these new powers and responsibilities as part of a long-term funding strategy.
Insurers of course pick up the financial costs of flooding. Despite the rising flood risk, the industry remains committed to providing flood insurance protection to as many property owners as possible. The Flood and Water Management Bill can enable flood insurance to remain widely available. This is why we urge the political parties to work together to ensure that this Bill becomes an Act as quickly as possible.
Justin Jacobs, Assistant Director, Property, Association of British Insurers
