Lloyds of London issues warnings

26th April, 2007

The Association of British Insurers have issued warnings that there may be as many as an additional 50 per cent of homes in the eastern part of England that will be in risk of damage caused by flooding by 2040. This is one of the factors that has influenced Lloyds of London to suggest that the insurance industry should start planning and modelling for higher levels of losses as the severity of weather and the frequency of distructive weather patterns increases. The insurance market has drawn on the expertise of a number of experts to issue a report on climate change and how it could affect the insurance industry.

The report says that "floods currently account for half of all deaths caused by natural disasters, but the frequency and magnitude of flooding is set to increase. Under some scenrarios, studies suggest annual flood damage in England and Wales could reach ten times todays level.

 

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