Environment Agency efficiency drive may lead to job losses

Insurers have voiced concerns over speculation that government flood risk ex-perts could be axed as part of an efficiency drive by the Environment Agency (EA).

This came as representatives of the insurance industry met the government to defend insurers’ response to the recent flooding.

The ABI met communities secretary Hazel Blears and officials from the Treasury and Defra .

Nick Starling, director of general insurance at the ABI, said 99% of people affected by the floods have been contacted by a loss adjuster.

“It is the insurance industry at its absolute best,” he said.

Meanwhile, the EA confirmed that it may have to axe staff as part of its efficiency drive. It is believed this could include flood experts.

A spokesman said the EA was “committed to reviewing the way each of its regions and functions work including flood risk management, to improve efficiency and release funds”.

The spokesman added: “It is often possible to achieve these changes through natural turnover, transfers and by providing training, so people can move internally.

“However, those cases where this is not possible there may need to be redundancies.”

But Alan Gairns, property development manager at Royal & SunAlliance warned: “Any industry that loses experts will suffer in the short term.”

Insurers have reiterated their concerns about the state of the nation’s flood de-fences, and how the £800m earmarked is to be administered. Currently only a third of the budget falls under Defra’s remit.

Norwich Union has called on the EA to share its flood defence data to enhance the accuracy of its flood mapping.

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