£1.1 billion a year of flood damage is being prevented by the United Kingdom's current network of river barriers and defenses, according to new research from the Association of British Insurers (“ABI”).
The ABI said in a statement that this was the first time the financial contribution of river water defenses had been quantified in this way.
The modelling, based on thousands of simulations of weather events with and without flood defenses, was commissioned by Flood Re and conducted by Risk Management Solutions (“RMS”). It emphasized the value to U.K. homes and businesses of flood defense spending and the importance of on-going investment by governments, particularly for flood-prone locations.
The ABI added that the research showed that inland flooding would, on average, cost almost three times more on an annual basis without the defenses – a bill of £1.8 billion rather than £0.7 billion across the whole of the United Kingdom. In England, the government currently spends around £0.6 billion each year on building and maintaining flood defenses, with the Environment Agency recently recommending an annual spend of £1 billion on all flood risk management.
Other findings included:
- Residential properties benefited from 42 percent of the average annual savings, the highest proportion of all assets analyzed;
- The more deprived 50 percent of the residential population benefited from 70 percent of the reductions in flood losses due to defenses; and
- Relative to the total damage floods could cause without defenses, the benefits of defenses were largest for more frequent, less severe flooding such as might be expected to happen once every five years. The financial impact of these less severe floods was reduced by 68 percent on average.
“Faced with the growing threat of climate change, there is a clear financial argument for investing in flood defenses. The barriers, walls, and natural defenses that currently prevent greater damage being done by the U.K.'s rivers during times of extreme weather make economic sense, but they must keep pace with the threat if they are to continue being effective. It's essential the U.K. government sticks to its ambitions on flood defense spending and doesn't let the lack of severe flooding in recent years lull the country into a false sense of security.”
Dermot Kehoe, director of communications and transition at Flood Re, added, “Since our launch, almost 250,000 properties at risk of flooding have benefited from the peace of mind provided by Flood Re. However, Flood Re will only be around for the next 20 years. This research shows just how vital it is that investment in flood defenses is maintained in the future so that householders will not need to live in fear of flooding after Flood Re has gone.”
Daniel Stander, global managing director at Risk Management Solutions, concluded, “I've often heard it said that an ounce of protection is worth a pound of cure. Such platitudes, however, cannot be allowed to suffice – especially in the face of events that wreck homes, lives, and communities. Effective public policy must be based on decision-useful, analytical insights.
“Thanks to this study, what we now have is robust methodology for demonstrating the return on investments in resilience. With climate risk increasing, it's even more important that stakeholders avail themselves of such analytical techniques. Only then can we hope to build a sustainable future for all.”
Learn more: https://www.floodre.co.uk/_rms/.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].