A new flood insurance deal that is designed to ensure residents in flood-prone areas across the UK have access to cover has been criticised by the London School of Economics (LSE).
Researchers at the university’s Centre for Climate Change Economics and Policy used an academic paper to argue that plans to cap the rate that people near to rivers and lakes pay for their insurance are flawed and do not properly consider the impact of global warming.
They added that because the number of houses that will be affected by floods in the future will likely increase dramatically, the funding plan for the project is unsustainable.
A conclusion in the paper stated: “The design of the flood scheme, which is expected to last until at least 2035, has not taken into account adequately, if at all, how flood risk is being affected by climate change.”
One of the co-authors, Dr Swenja Surminski, was previously a global warming advisor for the Association of British Insurers and is considered a leader in the field.
The paper has now been submitted to the Department for Environment Food and Rural Affairs, who will consider its findings and pass them on to the Department of Energy and Climate Change.