Residents and local authorities in towns, cities and villages close to water could be left facing an £11 billion liability because of unfair and unaffordable insurance premiums, council leaders have warned.
One of the world’s leading insurers has posted a massive drop in profits - attributed to the difficult environment on the financial markets, problems in Greece, currency translation effects and heavy burdens from natural catastrophes.
Government plans to reform the planning process must not lead to developments being built in flood risk areas, so making flood insurance more expensive or even unobtainable the Association of British Insurers warned today.
Global insurance and re-insurance group Munich Re has said that natural catastrophes in 2010 caused losses of US$ 130bn.