Natural Resources
Wales’s Flood Risk Strategy Manager, Steve Cook, told a meeting of the UK
Environmental Law Association, that currently one in six properties in Wales is
at risk of flooding.
Mr Cook said: “The
current number of properties at risk of flooding is likely to increase as we
experience the effects of climate change.
In the future we can expect increased rainfall, more severe storms and
rises in sea levels”.
Following the
dramatic weather of last winter and the serious impacts on individuals,
insurance companies, infrastructure providers, public sector bodies and others,
the UK Environmental Law Association brought together a number of leading lawyers,
insurance providers and academics to debate the wider effects of flooding, how
to minimise these impacts and the insurance industry’s response to the crisis.
Simon Boyle, a
leading and well respected environmental lawyer with Landmark Information
Group, brought a stark reality to the discussion. He outlined the dramatic consequences of
flooding such as death, personal injury, property losses and damage, as well as
the insurance implications. Mr Boyle
also pointed out the impact on commercial businesses:
“Although
businesses usually have business interruption insurance, generally this only
covers a three month period. When
businesses are flooded this period is often not long enough to get the business
back on track after the flood. This is part of the reason why around 60% of companies
that suffer major flood incidents go out of business within two years.”
As with any crisis,
there are a number of potential solutions.
Mr Boyle said: “From as little as a few thousand pounds
effective flood resistance measures could be installed for individual
residential properties.
“Most flooding does not go above a
depth of 80cm and can be effectively kept out of houses by installing flood
resistance measures such as door and window baffles.”
The insurance industry’s perspective was provided by Duncan
Spencer of EDIA who reinforced the sector’s challenge of balancing costs with
protection of homes and businesses.
Mr
Spencer identified that other impacts of flooding, especially from the
pollution caused as a result, are often overlooked. He pointed out that the costs of these
can be many hundreds of thousands of pounds.
In
looking to the future, Mr Spencer spoke about increasing risks and the
potential for a rise in liability law cases, as is being experienced within the
United States.
There was general
agreement that the situation whereby those home owners who are at a high risk
of flooding are receiving premium subsidies from other insurance payers of well
over £500 for each household annually is not sustainable in the longer
term.
In this context, Professor
Mark Stallworthy of Swansea University provided an overview of the UK
Government’s proposals for introducing a statutory Flood Re-insurance scheme. The scheme has the overall aim of ensuring home
owners continued reliance on the insurance industry to cover losses from
flooding. It will require the insurance
industry to pay levies into a fund that will be used to financially support
some claims. It also provides for the continued
cross subsidising of low and high flood risk insured households. Overall, this could result in a fairer
insurance deal for homeowners not at risk of flooding and also those at high
risk of flooding.
However, Professor
Stallworthy said:
“Whilst the Flood Re-insurance scheme
promises to protect the sustainability of flood insurance, there are concerns
about the significant number of properties that will be excluded and the
failure to address the possibility of a rapid increase in the levels of flood risk.”
Note to Editors:
UKELA [ http://www.ukela.org/ ] is the charity
which aims to make the law work for a better environment and to improve
understanding and awareness of environmental law. It promotes, for the benefit
of the public generally, the enhancement and conservation of the environment in
the UK and advances the education of the public in all matters relating to the
development, teaching, application and practice of law relating to the
environment.
A working party for Wales was established in
October 2013 to promote understanding and awareness of environmental law and
influence the development of legislation.
The seminar on Flood Risk and Planning was hosted
by Hugh James: Solicitors and held on Thursday 8 May. A similar event is being held at the
University of Law, Christleton, Chester on Thursday 15 May. The programme is as follows:
5.00 pm - Arrivals
5.30 pm - Chair’s introduction
5.35 pm – Overview of Flooding
Risks and Measures in Wales: Keith
Ivens, Natural Resources Wales
6.05 pm – UK Government
Proposals for Insurance Indemnity: Professor Mark Stallworthy
6.25 pm – Flood Risk: Property and
Land Transactions: Angus Middleton
6.55 pm – Flood Risk and Insurance:
Duncan Spencer
7.15 pm – Panel Discussion
7.30 pm – Chairs Summary and
Conclusion
7.40 pm – Networking
UKELA is grateful to Landmark Information Group for
sponsoring both these events.
For any enquiries, please contact Dr Norma Barry,
UKELA Wales Coordinator on 07785 551511 or 029 2022 6263
UK Environmental Law Association - Making the law
work for a better environment
Registered charity 299498; company registered in
England number 2133283
Registered office: City Point, One Ropemaker Street, London, EC2Y 9SS
