As one of the UK's largest insurers, AXA provides flood cover for thousands of customers. In 2007, we paid out around £200 million and helped many, many people back into their homes. Flooding claims can be very complicated with multiple contractors involved so we now manage all claims via a dedicated team to ensure a prompt and personalised service.
We are naturally concerned that the full implications of flood risk are properly analysed and that Government investment is both at the right level, and in the right places to protect our customers.
In 2006 we surveyed the attitudes of the SME community on climate change and the effects of previous floods on their businesses. One of the findings related to urban drainage. Drainage floods are unpredictable because they can happen anywhere and are not confined to low-lying land, flood plains or rivers.
In 2008 we looked again at the effect of poor surface water drainage on last year's floods. We know it was a major contributor - 75 per cent of our claims were as a result of surface drainage.
Based on our research, we estimate that an additional £720 million needs to be spent to improve surface drainage for the 45 towns and cities affected by last year's floods. The Government has so far committed only £5 million for the development of plans.
Currently, there is no clear responsibility for surface water drainage and we advocate that local authorities should be made accountable for the infrastructure improvements required to address the issues that result from this.
Risk of flood, as the past few weeks has shown, is not going to disappear. It is in everyone's interests to evaluate all the causes so investment in flood protection is effectively allocated. Insurers can only continue to provide cover in high risk flood areas if the Government keeps to its side of the bargain and invests appropriately to maintain and improve a variety of flood defences.
