Insurers warn of flooding risk

30th June, 2005

The Chartered Institute of Insurers (CII) has today issued a flood warning.

It claims that EU legislation leading to the implementation of the EC Water Framework Directive could potentially inhibit the UK's flood defences.

David Crichton, visiting professor at the Benfield Hazard Research Centre, says: "In Carlisle, where 4,500 properties were flooded in January this year, the new legislation is already preventing sustainable solutions to flood hazards from being considered."

Homeowners could face higher home insurance premiums if flooding speculation continues, yet Crichton's report highlights the fact that many insurers are unaware of flooding-preventing sustainable drainage systems (SUDS), which may help to reduce insurance risks.

The report suggests that insurers need to be increasingly knowledgeable and accurate when generating a premium.

In a separate announcement today, insurers More Th>n also urged insurance companies to use more sophisticated methods of risk assessment.

"Some insurers are still using crude methods of measuring risk and as a result many homeowners are unable to find suitable insurance cover even if they are not in a high flood risk area," said David Pitt, head of insurance at More Th>n.

 

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