Quinquennial Review
Last month the re-insurer Flood Re released its second Quinquennial Review providing a comprehensive assessment of the Flood Re scheme since its inception in 2016. Flood Re, a collaboration between the UK government and insurers, aims to make flood insurance more affordable and accessible for properties at high risk of flooding.
The key findings and recommendations of the report covered
1. Effectiveness and achievements: The review acknowledges Flood Re's success in insuring nearly a quarter of a million properties and enhancing market competitiveness, which has allowed homeowners to find better coverage options at reduced premiums.
2. Build Back Better (BBB) Scheme: A significant focus of the review is the BBB initiative, which encourages the use of more resilient building materials and methods during property repairs after flood damage. This initiative is supported by both the insurance industry and consumer advocacy groups as it aims to make homes more resistant to future floods.
3. Partnerships and industry involvement: Flood Re's partnership with the British Insurance Brokers' Association (BIBA) and other industry bodies has been pivotal in raising awareness and education about flood risk and mitigation measures. These collaborations are set to continue, fostering greater adoption of Property Flood Resilience (PFR) measures.
4. Future directions: The need for continued innovation and improvement in flood risk management practices.
Overall, the Quinquennial Review reaffirmed Flood Re's role in mitigating flood risks and supporting affected homeowners while outlining necessary steps for future resilience and sustainability in flood insurance.
Many homeowners are unaware that they are at risk of flooding and a programme of making them more aware of the possibility of a flood occurring locally. Known flood zones are set to increase due to the changing weather patterns placing more homes into flood risk areas. The government’s programme for housebuilding will bring more new homes into potential risk areas. Flooding does not just occur at coastal regions or adjacent to rivers; flash flooding is increasing in towns and cities. With the effects of climate change rainfall is become heavier and more intense and overloading the below ground drainage infrastructure.
London has produced an interim report following the devastating effects of flooding in 2021 to develop a unified strategy across the London boroughs for managing surface water. Actions outlined in the report include:
- Assessment of the risks and prioritisation
- Improving infrastructure
- Flood risk management.
The PCA is actively involved in technical working groups to assist the insurers in developing structured surveying strategies for assessing homes where there is a flood risk, and to provide guidance on how to make homes more resilient, to enable recovery from the event more quickly.
A significant proposal put forward by Flood Re in the report is to increase the number of formally trained surveyors in flood assessment and with member input, we will consider what scope there is for the PCA to support or deliver suitable training.