Norwich Union has increased the number of ‘refer’ postcodes for properties, which have been identified as being at high-risk from flooding.
Norwich Union has increased the number of ‘refer’ postcodes for properties, which have been identified as being at high- risk from flooding.
This reflects the increased frequency and cost of severe weather events across the UK and will affect the insurer’s range of household products including its Home Plus and Your House policies.
In addition, Norwich Union will be lobbying the Government to reverse the under-investment in flood defences in order to control preventable flooding and to help ensure the continued availability and affordability of insurance for customers in flood prone areas. The insurer is continuing to call for a rigorous review of flood defence planning and funding.
Nick Pierson, head of household products for Norwich Union commented: “We have seen an upward trend in flooding in recent years and the Environment Agency predicts a ten-fold increase in flood risk over the next century. Coupled with this, it has become clear that planning, maintenance and funding of flood defences is currently inadequate to protect against major flooding – a fact recently acknowledged by the National Audit Office.
“We’ve conducted an in-depth review of flood insurance considering the potential risk of flood across the UK, using information from both the extensive database created by our merger last year and the advice of independent environment experts.
“As a result, we’ll be adopting a more focused approach, which takes into account both the risk of flooding and information about the adequacy of flood defences. Enquiries for new business in high-risk areas will be referred to our underwriting team and renewal terms for existing customers will now reflect these factors as well as their claims experience.
“These changes are in line with the ABI flood agreement. However, in the absence of an integrated and ongoing Government strategy with adequate funding, Norwich Union needs to take a more detailed approach to flood assessment.”
Pierson concluded: “Insurance can only compensate flood victims to a certain degree, it cannot compensate for the emotional trauma that flooding can cause. On behalf of our customers we want to tackle the root cause of the problem.
“We believe that Government action is needed to ensure that, as far as possible, no one has to suffer trauma or damage to their property through inadequate flood defences. We’ll be taking a leading role in working to influence Government and industry bodies, to help ensure that steps are taken to minimise the damage caused by predictable and preventable floods.”
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Press contact: Jenny Chapman/Liz Kennett on 08703 666 864.
Notes to Editors:
- Norwich Union Insurance is the UK’s largest general insurer – insuring one in five households.
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