Jason Richards, CEO P&C Reinsurance UK & Ireland at Swiss Re: “The government is on a clear mission to build 1.5 million homes in the next years. This is great, but people need to have assurance that these properties are being built in safe areas. With the UK being increasingly vulnerable to flood risk, the long-term prosperity of our society and economy is at stake. Latest data from the Association of British Insurers (ABI) shows that insurers paid out a record GBP 585 million in 2024 for weather-related damage to people’s homes and possessions due to events such as windstorms or flooding.
“Where development in flood-prone areas is unavoidable, it is important to build more resilience into our infrastructure and mitigate the growing danger of floods and winter storms. This requires a coordinated effort by the government, re/insurers and the wider business community. In advanced markets, much of the existing flood defence infrastructure was built more than 50 years ago and is now reaching the end of its lifespan. Huge investments are needed to keep the structures functional and ensure that they remain effective in meeting the challenges of the current-day climate and hydrological conditions.
“While the required adaptation and mitigation measures will come at a price, a recent Swiss Re study shows that flood protection measures such as dykes, dams and flood gates are up to ten times more cost-effective than rebuilding. They are crucial in keeping people safe and protecting the economy. Factoring insurance into the planning and design stage is vital if we are to make the biggest possible difference. Providing financial protection against delays and damage, insurance can help ensure projects remain on time and within budget.
“Ultimately, adaptation planning needs to consider all stakeholders so that it addresses all of the immediate and long-term risks. Flood Re is a prime example of how the government and insurance industry working together can help to address the flood protection gap at a national level, and many other countries are also starting to consider Build Back Better as a policy that they are putting in place. But there is more to be done. The government’s recent commitment to spend an additional GBP 250 million on flood defences is a step in the right direction, but it is only through coordinated planning and preparation that this will translate into schemes that will truly alleviate the risk of flood.”
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