The flood re-insurer presented evidence to Parliament’s Environment, Food, and Rural Affairs (EFRA) Select Committee yesterday addressing the evolving risk of climate change threatening its exit
Flood Re’s chief executive Andy Bord outlined what should happen next to ensure that it can address climate change and reach a risk-reflective home insurance market by its exit in 2039.
As part of its inquiry into flooding in England it presented oral evidence at a virtual session yesterday to Parliament’s Environment, Food and Rural Affairs (EFRA) Select Committee.
The session explored the response to the winter floods, the impact of new government policies on flooding and development, as well as requirements around funding for flood risk management, the uptake of flood insurance and property-level resilience and the involvement of communities in decision-making.
Bord, said: “I would like to thank the EFRA Select Committee for inviting me today to give evidence to its Flood Inquiry. It was a valuable opportunity to outline what we believe needs to happen next to ensure that we can tackle the growing threat of climate change, and reach a risk-reflective home insurance market by the time the Scheme ends in 2039.”
Bord put forward three key points to the Committee:
1. Flood Re welcomes the acceptance of the QQR proposals: Flood Re is delighted that the government has accepted the majority of the Quinquennial Review (QQR) proposals including “Build Back Better” and offering discounted premiums for homeowners who have installed property-level flood resilience (PFR) measures.
The Scheme is ready to deliver on the proposals and believes they will support the insurance industry, encourage the growth of the resilience products sector and reduce the costs and disruption of future flooding when it occurs.
2. The government should support the piloting of Flood Performance Certificates (FPCs): An FPC would give householders the ability to understand what action needs to be taken to ensure their home is more flood resilient.
FPCs have the potential to be part of the solution to address common barriers to implementing property-level flood resilience, and can also be a steppingstone towards the government’s ambition of creating a more resilient housing stock.
3. Now is the time for all stakeholders to take action: The threat of climate change is real, and every day wasted increases the risk of flooding. Flood Re has worked in partnership to deliver the ideas set out in the government’s recent flood policy statement – the next step is the government putting its weight behind the actions that need to be taken by a range of different stakeholders.
Flood Re believes the first steps should be embedding code of practice for property flood resilience and pushing the statement forward. For example, by joining up with other government initiatives like the Green Homes Grant, developing a scoring mechanism for resilience, and piloting FPCs.
“I hope that the Committee and the government find our recommendations both effective and practical – and I look forward to supporting in the implementation of these however we can,” Bord added.
Read more…Insurance industry backs governments flood investment plans in fight against climate change
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