Today’s announcement by the water regulator, Ofwat, on water bills should lead to a significant reduction in the risk of sewer flooding, says the ABI (Association of British Insurers).

Ofwat has approved plans by water companies to spend almost £1 billion on sewer improvements, which will resolve the problem for over 9000 of the highest-risk homes – 90% of proposals put forward by water companies.  The Regulator has also made allowances for mitigation measures for a further 5000 properties to reduce the impact of the sewer flooding risk.

Jane Milne, the ABI’s Acting Head of General Insurance, said:

“The ABI is very pleased that Ofwat has accepted proposals for water companies to tackle all known high-risk problems of sewer flooding over the next five years.  The insurance industry has strongly supported such investment and the Regulator’s announcement provides a much–needed boost to ensure that our sewers are able to cope with the heavier rainfall that climate change will bring.

“This is very good news for customers.  Sustained investment in sewer systems will mean that insurance protection against sewer flooding can remain widely available.”

In the UK:

• More than 10,000 homes are currently at high risk (10% annual chance) of sewer flooding. More than half of these are in London and the Midlands.
  
• Repeat flooding is a problem. Ofwat research shows more than 60% of customers affected by sewer flooding in last three years have been flooded more than once; 15% of those homes affected over this period have been flooded more than six times.
  
• According to Government estimates, the value of assets under risk from sewer flooding is £270 million.
  
• Since 1994 there have been between 5,000 and 7,000 sewer flooding incidents each year. Half of these have been caused because the capacity of the system has been exceeded.
  

Notes

1. For further information contact:
                 Alan Leaman 020 7216 7440 (Mobile: 07957 482330) 
                 Malcolm Tarling  020 7216 7410 (Mobile: 07776 147667)
                 Lucy Butler 020 7216 7411 (Mobile: 07712 841184)
                 Dinah Lartey 020 7216 7394 (Mobile: 07712 841183)

2. The ABI is the trade association for Britain’s insurance industry. Its more than 400 member  companies provide over 97% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold more than a fifth of all investments traded on the London Stock Exchange, on behalf of millions of pensions and savers.

3. An ISDN line is available for broadcasts.