In the face of a rapidly changing climate, the frequency and severity of flooding events are escalating at an alarming rate. The recent surge in extreme weather patterns has highlighted the urgent need for comprehensive adaptation strategies.
According to data from the Government’s Foresight Future Flooding report, flood losses in the UK are now exceeding £1billion per year. With climate change and pressures on urban development, flood risk is set to increase further, fivefold by 2050.
However, tackling the challenges posed by flooding is not a task for a single entity. Instead, it requires a concerted effort from insurers, government, and industry alike. This collaboration is essential not only to mitigate the risks but also to create a resilient framework that can adapt to future climate uncertainties.
The role of insurers: moving beyond compensation
Traditionally, the insurance industry has been seen as a safety net, providing financial compensation to those affected by disasters. However, in the context of increasing flood risks, insurers must transition from being mere compensators to active risk mitigators. A good example of this is our work with Liberty Specialty Markets (Liberty) and their Risk Reduce platform, set up to support clients.
By leveraging advanced flood prediction models and data analytics, insurers can offer more than just coverage. They can play a pivotal role in risk management, incentivising the adoption of flood-resistant measures, and supporting the development of resilient infrastructure to reduce losses.
Indeed, insurers are uniquely positioned to drive proactive adaptation efforts by rewarding policyholders who invest in risk reduction, thereby reducing overall exposure. Some insurers, like Liberty, are even offering bursaries to support clients risk mitigation efforts, like setting up IoT sensors to give advance warning of flooding. Add in Zurich Municipal supporting their clients by bundling Previsico into policy see here .
Good link into Govt is Build Back Better and Flood Re – challenge is Flood Re ends 2039 and what happens then? NFU Mutual (hope they will be a client soon!) were one of first insurers to offer in 2018 and have invested £1m since then
Government: leading with policy and infrastructure investment
Government bodies at all levels – local, regional, and national – have a critical role in setting the stage for effective flood adaptation. Through the implementation of robust policies and regulations, governments can enforce building codes that mandate flood-resilient construction and land-use planning that avoids high-risk areas.
Moreover, governments must prioritise investment in critical infrastructure to protect communities from the devastating impacts of floods.
On this note, Steven Reed, the Secretary of State for Environment has stated that that Labour would spend £4bn on measures to mitigate flooding now they are in power, including building flood defences, digging out drainage systems and planting trees along riverbanks.
Further, collaborative initiatives, like public-private partnerships, can accelerate the deployment of these vital projects, ensuring that they are both effective and sustainable.
Industries’ contribution: innovation and implementation
The private sector, particularly those in the water, construction, and real estate industries, has a significant role in adapting to flood risks. Innovative solutions, such as flood-resistant building materials, smart flood detection systems, and green infrastructure, can greatly enhance the resilience of communities.
A highly innovative example, is Anglian Water’s project, supported by the Environment Agency and others, to use beavers to act as nature’s engineers. The beavers have helped to completely transform the landscape around them, by building dams, which have played a crucial role in reducing flood risk in the area by slowing down the river flow and channelling it through new channels and wetlands.
Another great example of innovation, is Floodjack’s FloodSafe system, which is designed to detect a flood event, triggering the house to rise above flood waters on a specially designed mechanical jack system, protecting both property and residents. The key to the successful delivery of this project was in the collaborative approach, that drew on the expertise found at Hull University, East Riding of Yorkshire Council and Humberside Fire and Rescue Service.
Overall, to succeed, industry players should work closely with insurers and government bodies to ensure that all solutions are not only technically feasible but also economically viable. By integrating flood resilience into the design and development of new projects, the industry can help reduce vulnerability and support long-term adaptation strategies.
The way forward: a collaborative framework
To drive meaningful progress in flood adaptation, it is imperative that insurers, government, and industry break down silos and work together within a cohesive framework. This collaboration should be underpinned by shared data, joint initiatives, and aligned incentives that promote a unified approach to flood risk management.
The development of a national flood resilience strategy, supported by all stakeholders, could serve as a blueprint for action, guiding efforts at both the policy and operational levels.
As we face an era of unprecedented flood risks, due to climate change and past building practices, the need for a collaborative approach to adaptation has never been greater. Insurers, government, and industry each bring unique strengths to the table. By working together, we can not only mitigate the impacts of flooding but also build a resilient future for generations to come.

About the author: Jonathan Jackson is CEO of Previsico, surface water flood forecasting specialists that enable people and organisations to minimise the impact of flooding. Backed by Foresight Group and underpinned by two decades of research at Loughborough University, Previsico’s world leading solution is used by insurers, businesses and government to reduce their losses.