By Rob Starr, Content Manager, Big4.com
Recent flooding in the UK has prompted two PwC experts to comment on the looming effects on the insurance industry.
Domenico del Re, catastrophe expert, PwC says the laws in place now only require a flood risk assessment when a new home is built. He feels that legislation to ensure new builds in flood risk zones are built to specific flood resilient requirements would be one solution to help limit future flood damage caused.
“There will inevitably be a tension between meeting the current housing demand and finding the best possible land and infrastructure to support it, but as recent events have shown, you can’t have one without the other,” he says.
Mohammad Khan, insurance partner, PwC also comments:
“Following the latest floods to strike the UK, we expect insurance renewal premiums to rise between 10% and 50% depending on the severity of flood damage caused. Even those not affected, are very likely to see their premiums rise by up to 5% – flood damage therefore is not just a problem for those currently affected but one for the UK as a whole.”