UK insurers want more information on flood defences
09 Jul 2007 17:10:51 GMT Source: Reuters
(Adds details, Norwich Union) LONDON, July 9 (Reuters) - UK insurers, facing a bill of around 1.5 billion pounds ($3 billion) after June's floods, want more information on the country's flood defences and the state of the defence system to help them continue to offer cover. Britain's wettest June on record has resulted in widespread floods across central and northern England, where thousands of flood victims are still clearing up after torrential rains. "What we have is a map of the country with no accurate flood defence data on there," said Simon Warsop, head of flood mapping at Norwich Union, the UK arm of insurance giant Aviva <AV.L>. "We are desperate for the Environment Agency to share that flood defence data with us," he told Reuters. Warsop said more information allows firms to offer insurance without being over-exposed to risk and brushed aside concerns that flood cover could be withdrawn altogether. The Association of British Insurers, which represents the industry, said on Monday it would meet the Environment Agency "as soon as possible". The ABI said its members -- who still offer flood cover in most standard policies, unlike many of their counterparts abroad -- remained committed to insuring their customers, if the government invests in flood defences. "The recent floods have not altered that commitment and we were delighted that the government recently announced a higher level of investment in flood defences," a spokesman said. "We will be meeting soon with the Environment Agency to discuss all the information they hold on flood defences and how it can best be shared with insurers." The ABI gave no timing on the meeting, but Norwich Union's Warsop said the recent floods had galvanised the government after months of negotiations: "I would be very disappointed if we didn't have that data by the end of the year," he said. The state of Britain's defences to protect some 2 million homes and businesses from flooding has come under the spotlight this year, after a report found they were inadequate in the face of more frequent storms and rising sea levels. In a report published last month before the floods, the National Audit Office found the Environment Agency had failed to meet its target of keeping 63 percent of defence systems in target condition, with only 57 percent meeting the objectives. Already hit by winter storm Kyrill, Britain's insurers have raised concerns that inadequate information on the state of the defences -- for example, where they are in worse condition than previously thought -- could mean companies are left with higher-than-expected exposures. Environment Secretary Hilary Benn said last week the government would increase flood defence spending from 600 million this year to 800 million pounds a year in 2010/11.
