Flood "time bomb" » Central government » 24dash.com

Aon have commented on what they describe as the government's "lack of action" following the latest UK floods.

Bill Gloyn, chairman of real estate Europe for Aon's Mergers & Acquisitions Group and president of the City Property Association said; “The widespread flooding of the past few days is a salutary reminder that the UK government is sitting on a time bomb if it fails to protect against floods before insurance is withdrawn from homeowners and commercial properties in high risk areas.

"Despite £3bn of claims following the floods of summer 2007 and the subsequent Pitt Review recommendations, the government has failed yet to state how it will strengthen flood defences, let alone take any action.

"Many of the recommendations are still on the table, to be considered in 2009. Now we’re seeing a replication of the damage from 14 months ago, with many areas affected for the second or third time within two years, but with no reassurance that even Pitt’s watered down suggestions are being put into place.

"In response to costly claims and lack of government action, insurers have now put a timeframe of five years on the once ongoing Statement of Principles, which states their intent to maintain flood insurance protection as long as the government implements measures to maintain and improve flood defences. The revised Statement, published in July 2008, anticipated that by 2013 the situation will have been resolved and that there will be no ongoing need for any further agreement between insurers and the government on the issue.

"In practice, this worryingly means that insurance simply won’t be available for those high risk properties that need it the most. It will be miraculous if the government turns this around following their recent inertia but people need to know of its intentions to protect their homes and businesses. Without any clear idea, it may be necessary to take things into their own hands and implement protective measures themselves.”