It was just yesterday that we told you about Zurich Insurance warning of a potential double disaster for the UK with flood risk adding to the woes already being endured courtesy of the coronavirus pandemic. Now, Flood Re has added its voice to the calls for the government to seriously examine the flood resilience issue as part of today’s summer statement.
It points out that it has processed more claims and paid out more this year than in the first three years of its operation combined. Over 2019/20 it incurred claims at a gross cost of £160 million – that’s 10 times higher than the previous year.
With the COVID-19 pandemic adding to the issue, chief executive Andy Bord believes a “build back better” plan is needed alongside sustained investment in flood-risk management strategies.
“This year has been significant in many ways,” he said. “We have seen the first major flooding events since our launch in 2016 as well as having to adapt to the COVID-19 pandemic. In these unprecedented times, the country must build back better, developing a recovery plan that creates sustainable and resilient foundations for the future.
“For those at risk of flooding, it is critical that investment in flood mitigation strategies be maintained.”
In addition, it noted a number of other highlights from its 2019/20 annual report – including that the number of policies is 20% higher than in 2018/19, and now 94% of the home insurance market offers the scheme. Its profit before tax was £61 million, down from £136 million a year earlier.
