ABI follows Stern report with UK catastrophe prediction

The Association of British Insurers is warning of a catastrophic flood risk that could sweep away hundreds of thousands of homes unless urgent action is taken by the government. In its report published on 7 November, Coastal Flood Risk - Thinking for Tomorrow, the ABI warned the East coast of England could be severely damaged if a predicted 40cm rise in sea levels takes place by 2040. The ABI warns this will put an extra 130,000 properties at risk of flooding. In total, 400,000 properties will be at risk, up nearly 50% on the current number. In Hull alone 19,000 properties could suffer serious flooding and a further 24,000 properties in Southend.

Without improvements to existing flood defences, the cost of a major coastal flood could soar by 400% and cost as much as £16bn.

In addition to residential homes, the report warns essential services and lives will be at risk. A total of 15% of fire and ambulance stations and 12% of hospitals and schools are in flood-risk areas.

Allianz Cornhill's household manager, Steven Ward, said: "The situation will only get worse unless the government acts now to counter the threat. With scientists predicting that global warming will increase sea levels by 40cm in as little as 35 years, we need a comprehensive, long-term strategy to improve flood defences.

"Tighter local authority planning rules are also needed to prevent further properties being built in areas vulnerable to flooding. Although insurance can provide financial recompense, flood damage in the home and the loss of personal belongings can be deeply distressing. While householders should ensure they have adequate flood cover, the government needs to do more to reduce the risk of it happening in the first place."

Peter Ainsworth, the Shadow Secretary of State for the Environment, has hit out at Labour's recent proposed cuts to flood defence spending. In response to the ABI's report, he said: "It is sometimes easy to forget that the effects of climate change will become starkly evident in the UK.

"Rising sea levels will continue to batter our coastline and greater areas will be vulnerable to flooding. Not only will this cause great personal distress but it will have implications for the UK economy as well."

The ABI release follows the Stern report, which called on governments across the world to invest now in protecting the environment to avoid financial crises in the future.