Aviva CEO warns about future insurability of homes in flood zones

Amanda Blanc, CEO of Aviva, stated that homes being constructed in flood zones may become uninsurable due to increasing flood risks. She highlighted that approximately 115,000 new homes are projected to be built in these areas over the next decade. According to the Environment Agency, around 6.3 million homes and businesses in England are currently at risk of flooding. Aviva's research indicates that one in nine homes built between 2022 and 2024 are at medium to high risk of flooding. Blanc emphasized the need for careful consideration regarding the locations of new homes and suggested that construction near flood zones should adopt different strategies to mitigate risks. The research also forecasts that nearly a third of new homes built in 2024 could face flooding risks by 2050, with one in seven at medium to high risk as extreme weather events become more frequent. Blanc referenced a recent Met Office estimate indicating that record-breaking wet winters in the UK have shifted from occurring once every 80 years to once every 20 years due to global warming. In an interview, she urged the government to refrain from speculative policy announcements ahead of Chancellor John Healey's Budget on October 28. Blanc noted that speculation regarding pension changes has led to a significant increase in withdrawals from pensions, with 30 times the normal amount withdrawn in the past year. She expressed Aviva's readiness to invest in UK infrastructure, having already allocated over £100 billion, including £35 billion for infrastructure projects. Regarding the pension triple lock debate, Blanc stated that changes could impact private pensions, emphasizing the need to consider the balance between state and private pensions.