Insurance News Archive
UK homes at high risk of flood
Flood defence spending is inadequate to tackle increasing risks, the Association of British Insurers (ABI) has said.
According to the industry body, government spending will need to increase by 10 per cent a year in order to keep up with problems caused by climate change.
The total spend will need to be £750 million by 2011 in order to protect homes and property.
The ABI said that although more than double the number of homes in the UK are now at high risk of flooding than were four years ago - 570,000 compared to 220,000 in 2002 - spending on defence measures has been frozen.
"Britain is one of the few countries where flood insurance is widely available from the private market," said Stephen Sklaroff, deputy director general of the ABI.
"Insurers want this to continue. But the new, higher estimates of homes and businesses at risk means that the government needs to invest more in flood defences.
"This makes good economic sense for home owners, businesses, and the taxpayer," he added.
According to the Met office, more than half of the Greenland ice sheet could be lost over the next 1000 years as a result of global warming, leading to a four metre rise in the sea level.
20 Jul 2006