Extreme weather patterns are changing, and areas once considered low risk are now vulnerable to severe flooding.
Losses from flooding worldwide amounted to $325bn over the last five years, of which only $70bn was insured. In the United Kingdom alone, it is estimated that the total number of properties in areas at risk of flooding from surface water could increase from 4.6 million to 6.1 million – a rise of 30% between 2040 and 2060.
Despite the growing threat, many organisations choose to go uninsured, either assuming they will not be impacted because they have not previously suffered an event, or because the commercial market is viewed as inefficient and prohibitively expensive.
As insurance markets have grown increasingly cautious, often raising deductibles or excluding flood coverage altogether, large protection gaps for flood have been left.
Understanding flood risk means recognising that no business is immune – proactive planning and mitigation are key to avoiding costly disruption and loss.
