07 SBRISK0410 RSA.qxp 17/3/10 3:32 pm Page 7
CORPORATE RISK
Comment
James Wallace
‘
We need more SUDS to manage
rainfall and reduce flood
L
’
risk
ike many other sectors, the insur- help pre-empt and avoid such situations
ance industry cannot afford to not only for the benefit of communities
ignore the impacts of climate and and customers, but also for our business.
environmental change. RSA has a her- Looking ahead, as an industry, we’ll
itage dating back almost 300 years – and continue to work with government and
during this time we have responded and communities to ensure that customers
adapted to an ever-changing world. The continue to benefit from the security of
changing intensity and frequency of flood defences and insurance, by under-
extreme weather is a cause for concern standing how we can adapt to the worst
for insurers. impacts of extreme weather events. The
In recent years, the spotlight in the economic crisis means that, more
UK has very much focused on flooding than ever, there is pressure on flood
and the role insurers play in dealing, not defence budgets.
only with the aftermath, but also in RSA has partnered with WWF to look
working with government on flood at ecologically sensitive ways of manag-
defences, to prevent flooding. Flooding ing water and tackling flooding. Ofwat
is a serious risk for people in many parts estimates that about half the average
of the UK, projections now show that annual flooding incidents (between 5,000
we can expect to see extreme floods at an and 7,000) are as a result of the capacity Insurers need to take proactive steps to
increasing rate. Currently, over 2.5M of the drainage system being exceeded.
help pre-empt and avoid severe flooding
properties in the UK are at risk of flood- We are taking practical solutions to tackle
ing from seas and rivers. this problem, such as sustainable urban access and existing flood defences are
In reaction to this, RSA has developed drainage systems (SUDS) and working coming to the end of their life. The proj-
systems that monitor the weather and towards the implementation of them. ect will use SUDS to improve water
anticipate potential incidents. This allows SUDS offer multiple benefits to man- quality and increase natural capacity for
us to stay on top of weather events and age intense rainfall and reduce flood risk, flood waters, as well as creating an area
provide the best service to our customers however, the full potential of SUDS has which supports wildlife and that the
at the earliest opportunity, in the face of not yet been realised. SUDS both reduce community can enjoy. The project will
these climate challenges. Expected rain- pressure on water resources and increase be the national demonstration site of
fall, wind speeds and gust levels are water quality by mimicking natural urban river restoration and used as a
tracked daily and we also use sophisticat- processes, slowing down the movement model to highlight effective management.
ed geographical information systems of water and enhancing groundwater By taking action through innovative
(GiS) that can calculate flood risk on a recharge. Through the WWF RSA SUDS partnerships such as that with the WWF
street-by-street basis. These systems programme we are aiming to encourage and the TRRT, we believe that RSA can
allow us to know where customers are change in government policy for wide- lead by example to the rest of the indus-
and mean that when the worst happens, spread adoption of SUDS across try in showing how, low-cost, environ-
we can respond quickly. England and Wales. mentally sensitive solutions can make a
Whenever there is severe flooding, as To run parallel with the joint WWF difference in the way that we deal with
an insurance company, RSA will head to initiative, RSA is funding a SUDS proj- climate change. These changes will help
the area as soon as possible and our loss ect at Mayesbrook Park in London educate communities of the ways that
adjusters witness first hand the devasta- (managed by the Thames River they can exist in harmony with the envi-
tion that impacts the lives of our cus- Restoration Trust (TRRT)). The ronment so that they are ultimately safer
tomers and their local communities. Mayesbrook is a constrained stream that and more secure.
From a business perspective, these events comprises mostly of urban surface water
also have an effect financially. We there- run off; currently there is low flood stor- James Wallace is group head of corporate
fore need to take proactive steps that can age capacity, little wildlife, no public responsibility at RSA
SB FutureProof ❘ April 2010 7
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