“Flooding risks present a major challenge to insurers. It is important they are fully aware of the latest developments, so they can make informed decisions,” said the author of the CII’s new report on flood risks and insurance.
David Crichton, visiting professor at the Benfield Hazard Research Centre, said the report showed how the risk of flooding was growing in terms of hazard, exposure and vulnerability.
The report points out that it is not only property insurers who will face greater challenges from flooding; it said floods could have a major impact on motor on liability insurers as well.
It highlighted flooding’s potential impact on professional indemnity insurance, especially the implications of the new Housing Bill in England and Wales with its requirement for ‘sellers packs’ to indicate potential future flood risks.
The CII said more than 200,000 houses in Britain could become uninsurable due to flood risk, while more households could expect big increases in their premiums each year as flood mapping and modelling improves.
CII members can access the report, ‘Flood risks and insurance’, at the CII website cii.co.uk/is/floods.
