Jason Richards, CEO of P&C Reinsurance for the UK & Ireland at Swiss Re, is calling for a coordinated effort by the government, re/insurers, and the broader business community to build more resilient infrastructure to mitigate the growing risks of floods and winter storms, especially where development in flood-prone areas is unavoidable.
Data from the Association of British Insurers (ABI) shows that insurers paid out a record £585 million in 2024 for weather-related damage to homes and possessions caused by events such as windstorms and flooding.
New data suggests that over 100,000 new homes could be built in flood-prone areas over the next five years.
Richards said, “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.”
Richards noted that much of the existing flood defense infrastructure in advanced markets was built over 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,” he added.
Although these mitigation measures will be costly, 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.
Richards continued, “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.”
Nonetheless, Richards emphasises that more needs to be done to protect people and safeguard the economy. He stated that only through coordinated planning and preparation can these efforts translate into schemes that effectively mitigate flood risk.
The post Swiss Re calls for coordinated effort to mitigate flood risks in UK appeared first on ReinsuranceNe.ws.