The UK needs over £1 bn in annual flood defence investment to address rising climate risks, according to a study by flood risk modelling firm Fathom, commissioned by Flood Re, a joint initiative between the UK Government and the insurance industry.
The research found that existing flood defences prevent £1.15 bn in annual flood-related damage to UK homes.
If business, industrial, and agricultural losses, along with additional costs such as alternative accommodation, were included, the total would exceed £2 bn.
Six of the UK’s wettest years on record have occurred since 1998. Recent storms, including Babet, Ciaran, and Debi, have led to £570 mn in insurance payouts.
Dermot Kehoe, Director of Communications and Transition at Flood Re, stressed the need for long-term flood defence investment of at least £1 bn per year.
He emphasized that mitigating flood damage is essential for maintaining affordable insurance for at-risk properties.
We must continue to mitigate the damage caused by flooding to ensure the insurance market has the ability to provide affordable cover to those at risk.
Dermot Kehoe, Director of Communications and Transition at Flood Re
Kehoe reiterated Flood Re’s commitment to collaborating with the Government, insurers, and communities to strengthen flood resilience. He highlighted the need to focus on both protection and preparedness to ensure homes, businesses, and local economies can withstand and recover from flooding.
“Flood Re remains committed to working with Government, insurers and communities to drive forward flood resilience. By prioritising resilience alongside protection, we can build a future where homes, businesses and local economies are not just defended against flooding, but prepared to withstand and recover from it.”
The study also projected that climate change will increase flood risk further. By 2069, the number of properties exposed to river and coastal flooding could rise 27%, from 2.4 mn to 3.1 mn.
Dr. Oliver Wing, Chief Scientific Officer at Fathom, underscored the economic value of flood defences, which save UK households over £1 bn annually and up to £13 bn during severe floods.
As our nation’s infrastructure ages, rebuild costs balloon, and climate change fuels ever more intense flood events, funding the maintenance and expansion of the UK’s flood protection systems has never been more critical.
He warned that as infrastructure ages, rebuild costs rise, and climate change intensifies flood events, securing funding for maintaining and expanding flood defences is more urgent than ever.
Hannah Gurga, Director General of the Association of British Insurers, noted that insurers paid a record £585 mn in claims last year to help households recover from extreme weather.
She called for a shift from reactive responses to proactive flood prevention. Gurga urged the Government to commit to long-term investment in flood defence maintenance and expansion, stressing its importance in the upcoming Spending Review.
