Fit for purpose and fit for the future? An evaluation of the UK’s new flood reinsurance pool

Flood Re is widely hailed as an innovative approach to disaster risk insurance. This paper offers a mixed-methods evaluation of the new pool, asking whether it is “fit for purpose” and “fit for the future”. The investigation considers the roles of the public and private sectors, risk modelling and risk communication, technical underwriting, distributional aspects and the behavioural implications of Flood Re, particularly with regards to risk reduction and prevention. The paper concludes that the new pool is a transitional reinsurance arrangement that supports the private insurance market and secures affordability of flood insurance in the UK through premium subsidies. However, this approach is likely to come under pressure in the face of rising flood risk as it fails to incentivize flood risk management and risk reduction efforts

The evolution of UK flood insurance: incremental change over six decades

In this paper, the authors' theorizing shifts away from the catalytic role of the flood itself – or other crises – towards a deeper understanding of the relationship between change and stability, taking the example of UK flood insurance and the agreements – and the implicit policy approaches – between the actors involved: private insurers and the government. The study relies upon in-depth analysis of policy agreements governing flood insurance since the 1960s, and semi-structured interviews with six current or former flood insurance professionals. The important agents of change have been, firstly, threats to existing household insurers from new entrants unencumbered by agreements to insure all comers. Secondly, technological changes have made exposure more explicit and pricing risk both easier and less expensive. The slow pace of change and the relatively stable role of the different actors and coalitions is now clearer. Many windows of opportunity created by major flooding or financial crises have not significantly affected the pace or direction of policy change. The overriding importance of the London location for – and the profitability of – the insurance industry, both to government and to the insurers, explains the extraordinary policy stability described here. This history suggests that the UK may not be a good model for imitation elsewhere

Housing supply and brownfield regeneration in a post-Barker review world: A comparison of policy and practice in England and Scotland

The findings of the Barker review, which examined the reasons for the undersupply of UK housing, have important implications for the devolved constituents of the UK, including Scotland. This paper traces the emergence of the brownfield regeneration policy agenda across the UK and examines how the Barker review connects with this brownfield policy focus. The paper compares housing and brownfield policies and practices in England and Scotland, places them in an international context and elicits wider lessons for devolved governance in relation to housing policy, in terms of `centrist—local' tensions. Estimates based on published data suggest that Barker's emphasis on increased housing supply cannot easily be reconciled with the current emphasis on brownfield development and is likely to require a return to greenfield development in both countries