Warning more homes will be uninsurable due to flood risk

Amanda Blanc, the head of insurance company Aviva, has warned that homes being built today could become uninsurable in the future due to the increasing risk of flooding. According to Blanc, based on current building patterns, 115,000 new homes are set to be constructed in flood zones over the next decade. Amanda Blanc, speaking on the BBC's Big Boss Interview podcast, emphasized the need to reconsider where these homes are being built.

England, she stated, is definitely building homes that might later be uninsurable. Aviva's research reveals that one in nine homes built between 2022 and 2024 are at medium to high risk of flooding. Blanc further explained that construction near flood zones should be approached differently. Nearly a third of new homes built in 2024 will face some level of flooding by 2050, while one in seven will be at medium to high risk due to escalating extreme weather events.

The Met Office recently projected that flood-related extreme weather, once considered an 80-year event, is now expected to occur every 20 years with current global warming levels. Aviva, a significant UK private pension provider, urged the government to steer clear of policies that may appear convenient before the Chancellor's first Budget on October 28th.

Blanc cautioned that such policy 'kite flying' could prove detrimental. She also highlighted that speculative changes to pensions last year led to a threefold increase in pension withdrawals.