From 1 September, Norwich Union will increase the number of ‘refer’ postcodes for properties, which have been identified as being at high-risk from flooding.
From 1 September, Norwich Union will increase 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.”
Press contact: Jenny Chapman on 08703 666 864.
Notes to Editors
- Norwich Union Insurance is the UK’s largest general insurer – insuring one in five households.
- CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK’s largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world’s sixth largest insurer based on gross worldwide premiums.
- CGNU’s principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of over Ł27 billion and assets under management of more than Ł200 billion.
- From October 2000, the combined life and pensions, general insurance and retail fund management businesses in the UK operate under the Norwich Union brand, while the institutional investment business operates under the Morley Fund Management brand.
- A selection of images are available from the CGNU Newscast site at www.newscast.co.uk
- Norwich Union’s news releases are available on the internet on this site
- Norwich Union Insurance Limited Registered in England Number 99122 Registered Office 8 Surrey Street Norwich NR1 3NG.
- Member of the General Insurance Standards Council.