Insurers must work with government on flood risk education programmes
The Pitt review is lighter on insurers than had been widely expected, with Sir Michael Pitt commending the majority of insurers for their handling of the 2007 summer floods.
It had been anticipated that insurers would take a hefty share of the blame for the fact that so many homes – over 4,000 according to Pitt and government statistics, and 2,000 according to the Association of British Insurers – are still unfit for habitation after the floods, leaving thousands still living in temporary accommodation.
But Pitt said: “The main reason for the long delay is the problem of drying out. If you had to point the finger anywhere as to whose fault this is, then I think the main issue is about the appropriate view to construction materials and methods.”
He called for changes to building construction regulations for new build homes, and homes being refurbished.
But he also said that, based on a study of people in Hull, the stress of dealing with insurance companies and having to go through a cumbersome system of approval added to people’s discomfort and anxiety at a time when they are already in a very distressed condition.
Pitt said that the 22% of people who were found to be dissatisfied with insurers following the floods was a small but significant number.
He called for the insurance industry to work with government to deliver a public education programme setting out the benefits of insurance in the context of flooding. He also recommended that in flood risk areas, insurance notices should include information on flood risk and the steps that can be taken to mitigate risk.
Overall the report, which contained over 92 recommendations, was balanced and fair. Most importantly, it more clearly defined who should be responsible for what actions when dealing with flood defence and future catastrophes.
Pitt said the government’s funding plan for flood defence of £800m by 2010-11 was a good step. But he added that due to evidence of rising risks of climate change, the government should plan funding based on above inflation rate settlements in future spending reviews.
He also called for a nationwide map showing each authority’s obligations, and also proposed a joint partnership with the Met Office and Environment Agency to issue better warnings. Water and power companies were told they should better protect their sites, and share more data of where reservoirs and drainage systems are located.
Pitt said that 80% of his recommendations could be undertaken within the current budget but would not give an estimate of costs over and above, including for insurers.
