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Daily Insurance Industry News
Friday 21st of November 2008
July 21, 2008

AXA demands £720m Government funding to improve drainage

by Gill Montia

Story link: AXA demands £720m Government funding to improve drainage

AXA is calling on the Government to improve surface drainage across the UK’s 45 towns and cities affected by last year’s flooding.

The insurer estimates that an additional £720 million needs to be spent on such work, taking the total UK flood defence budged for 2010 to 2011 to £1.5 billion.

It is also demanding a system of clear accountability over drainage problems that cause flooding.

The Government has so far committed £5 million for the development of Surface Water Management Plans; however no money has been allocated to implement the actions that are required.

According to AXA’s managing director of claims, David Williams, over 75% of flood claims in 2007 resulted from drainage issues.

Mr Williams also points out that under the current arrangements responsibility for surface water drainage is not clear.

In addition, research undertaken for AXA has identified that funding strategies have not been established for surface drainage planning by local authorities and the insurer is advocating that local authorities should be made accountable for the infrastructure improvements required.

 

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