Aviva chief warns flood-zone homes could become uninsurable

Amanda Blanc, chief executive of Aviva, has warned that homes currently being built in flood-risk areas could become uninsurable in the future as the threat of flooding increases. Blanc told the BBC that the flooding threat was “absolutely increasing” and questioned the wisdom of continuing to build in areas already identified as vulnerable. She said 115,000 homes could be built in flood zones over the next decade if current construction patterns continued.

The Environment Agency estimates that about 6.3 million homes and businesses in England are at risk of flooding. It warned in August that the figure could rise to around eight million, or one in four properties, by the middle of the century as the climate crisis worsens. Blanc said England was building properties that might become uninsurable and urged authorities to consider carefully where new homes were located.

She added that measures could reduce the damage caused by flooding and make individual properties more or less vulnerable. Aviva research cited by the report suggests that nearly one-third of homes built in 2024 will face some flood risk by 2050. One in seven is expected to face medium-to-high risk.

The warning follows a very wet and stormy winter in 2023-24. The Met Office estimated that winters of that type had become more frequent, moving from once-in-80-year events to once-in-20-year events. Blanc also criticised government “kite flying” before Chancellor John Healey’s first budget on October 28.

She said speculation about pension changes had led to withdrawals running at 30 times the normal level in the previous year, warning that customers might regret taking tax-free lump sums that could not later be restored.