A joint report published by the Association of British Insurers (ABI) and Flood Re ahead of the UK government’s consultation on its comprehensive spending review calls for flood defences to be kept in good condition.
Flooding is the greatest natural disaster risk in the UK, with an estimated one in six properties in England and Wales, one in 11 in Scotland and one in 34 in Northern Ireland now at risk of flooding. Six of the 10 wettest years on record have occurred since 1998.
The report, ‘Modelling the Impact of Spending on Defence Maintenance on Flood Losses’, was carried out by flood risk specialist JBA Risk Management, which evaluated the benefits of maintaining flood defences over a 30-year period for several different spending scenarios.
Key findings from the research highlight that:
- River flood defences provide protection to flood risk communities valued at £568 million a year. Without such defences, the research suggests flood losses of approximately £958 million a year. With defences, inland flood losses reduce to £388 million a year, saving £568 million.
- Flood defence maintenance is very cost effective—for every £1 increase in maintenance spending, almost £7 is saved in capital spending on defences. The report highlights that increasing current maintenance spending by 50% could extend the lifespan of defences by an average of eight years.
- Well-funded flood defences rarely breach. As long as a flood defence does not deteriorate to, and remain in, a poor condition, then it is unlikely to breach—which is why it is so important that flood defences are maintained in a good condition. Conversely, if maintenance spending is cut, flood defence lifespan reduces, and overall annual costs will rise.
- Based on the current state of existing flood defences, London and the Southeast have the highest estimated annual flood loss with 30% (£117. 4 million) of the total, followed by the Northwest at 11% and Central Scotland at 8%.
- While this report focuses on flood defences and the important role they play in reducing the impact of flooding, with the UK’s surface water flood risk increasing, it is important to ensure that other flood risk management measures, such as clearing culverts, are also funded appropriately.
James Dalton, director of general insurance policy at the ABI, said: “Thi