Last week, our firm was proud to host the ABI’s latest Boardroom Forum, which brought together leaders from across the insurance sector to discuss the growing challenges posed by flooding and, critically, how those risks can be better managed in future. A key theme in the discussion was the role of planning reform, and the need to ensure that flooding is considered not only for new developments themselves but also for their potential impact on surrounding properties.
We strongly support efforts to ensure that flood risk is factored in at the planning stage. It is often overlooked that new developments can materially increase flood risk for neighbouring homes, even when those properties have never previously experienced flooding. This is something that is not well understood by homeowners, and we know from clients that many policyholders are left confused when their premiums rise or flood cover becomes restricted after new homes are built near them, despite nothing changing at their own property.
In the same week as the ABI forum, parliament saw a fresh attempt to bring flood risk into the spotlight via planning law. On Tuesday 24 June, Conservative MP Blake Stephenson introduced a Ten-Minute Rule Motion for a new Planning (Flooding) Bill, aimed at plugging what he described as serious gaps in how flood risk is assessed and mitigated in the planning process.
This intervention comes at a time when flooding is noticeably absent from the government’s flagship Planning and Infrastructure Bill, which is currently making its way through the House of Lords. The bill, as originally introduced, contained no reference to flooding or drainage standards, prompting concern from stakeholders across the insurance, planning and environmental sectors. There are now active efforts to ensure that flood risk is addressed via amendments as the bill progresses through the Lords. The proposals in Stephenson’s Private Member’s Bill provide a useful blueprint for the types of reforms that could – and arguably should – be incorporated.
Stephenson’s speech was clear in its message: this is not about “nimbyism,” but about ensuring safe and sustainable development. Using his own constituency of Mid Bedfordshire as a case study, he described how historic homes in the village of Maulden have ended up in newly classified floodplains because of upslope development with inadequate drainage. And yet, he warned, more land is being promoted for development, leaving residents to foot the bill through higher insurance costs and physical flood damage.
With no opposition voiced, the House granted leave for the bill to proceed. A second reading is scheduled for Friday 11 July.
This week’s activity in both parliament and the insurance sector underscores a growing political and industry consensus on the need to improve how flood risk is considered in the planning system. For insurers and their customers, the cost of getting this wrong is already being felt, whether through property damage or increased premiums.
While the Planning (Flooding) Bill faces the usual uncertainties of a Private Member’s Bill, its proposals are well timed and have clear relevance to the Planning and Infrastructure Bill, where a real opportunity now exists to embed stronger protections and clearer standards into the primary legislation.
We will continue to monitor developments closely, including any amendments to the Planning and Infrastructure Bill brought forward in the Lords, and wider policy initiatives around sustainable drainage systems and flood resilience. We are also actively engaging with Blake Stephenson MP to explore how insurers can support efforts to improve planning outcomes and reduce flood risk.
If you would like to discuss any of these issues further, please don’t hesitate to get in touch.
Natalie Larnder - Head of Market Affairs
Matthew Rogers - Head of Property Risks & Coverage, and Climate & Emerging Risks SIG Lead
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