UK brokers call on government to establish independent agency for flooding

The British Insurance Brokers’ Association (BIBA) is encouraging the UK government “to appoint one single body with the authority to take responsibility for the risk of flooding,” as well as to co-ordinate discussions with various stakeholders to reduce the risk of flood damages in the future. “The UK is one of the few member states in Europe where consumers are able to purchase insurance policies offering protection in the event of flooding,” BIBA notes in its ‘Manifesto 2008,’ posted on its Web site.To ensure this protection in the future, BIBA is calling for the government to create an agency exclusively dedicated to mitigating the risk of flooding.Also, BIBA is calling for:government commitments on new flood defences and improving existing drainage systems to be supported by “appropriate and immediate funding;”improved flood map development;insurance coverage at affordable rates, dependent on adequate and ongoing government funding for flood defences;home builders and developers to consult with the insurance industry before building on flood plains;a homeowners’ awareness campaign; andinsurance to be provided as part of governments’ social housing contracts. The manifesto follows a difficult year for UK insurers in the area of water damage claims. In its report, ‘Wrong Type of Rain: Impact and Implications of 2007 UK Floods,’ Guy Carpenter & Company LLC noted extensive flooding in June 2007 caused severe damage in north-eastern, central, and southwestern England.”Over 130,000 insurance claims were submitted, with insured losses estimated at over 3 billion ([US]$6.2 billion),” the report noted.In Canada, insurance coverage does not exist for overland flooding, although there is coverage for water damage caused by sewer backup. Some in the Canadian industry have called for discussions about the possibility of providing overland flood coverage in the future. Such discussions would no doubt be based on obtaining a number of the conditions similar to those mentioned in BIBA’s manifesto, including an update of Canadian flood maps.