Briefing: ‘Climate breakdown’ puts pressure on insurers – but is timely, country-wide risk management achievable?

In May 2025, TV presenter, environmentalist and naturalist Chris Packham addressed the insurance sector at Lloyd’s, describing his experience of flooding.

Speaking at an event hosted by flood modelling business Previsico, which was launching its 2025 State of Flood Resilience report, Packham explained how his garden in Hampshire backs onto a local river. This has meant that his property has faced increasing flood severity risks over the last five years, he said.

However, following the UK’s recent warm weather spell, Packham noted that the river is presently a series of stagnant pools, which has left the otters who live at the bottom of his garden high and dry.

Previsico’s report itself made for stark reading.

It found that although 43% of businesses have experienced flooding, only 29% have a flood action plan, exposing a serious preparedness gap among UK organisations.

Only 8% of the report’s respondents feel extremely confident in dealing with a flood, while 12% said they are very prepared for extreme weather overall.

Despite the fact that 87% of respondents are concerned about surface water flooding – often described as the most unpredictable and damaging type of flooding – the report found that 65% of businesses lack early warning systems that flag this risk.

Businesses included in the research cited business continuity (51%) and health and safety (26%) as top concerns associated with flood risk.

Suffering a ‘climate breakdown’

The underlying issue is the ongoing rise in the level of flooding faced by the UK each and every year.

The country’s creaking infrastructure was not designed for such pluvial bombardment and while the UK government has recognised this rising threat, the funding for flood and coastal defences is still far too low on the priority list.

Packham said that the term ‘climate change’ was simply not strong enough. He prefers to use the term “climate breakdown”.

He said: “We are an enormously resourceful, intelligent, adaptable and creative species. We are in a position now where we are conscious of the damage we are doing [to the environment] and we ought to be addressing that.

“When it comes to flooding, the impacts are significant and broad. Flooding overwhelms our infrastructure and impacts our agriculture. I see climate breakdown every time I look outside my window.

“We face a climate breakdown, but it has not yet been integrated into our lives as a distinct entity. Frankly, at present, we simply do not feel enough pain from this breakdown. It has not been integrated into our lives.”

End of the line

The problem for the insurance industry is that while reinsurance scheme Flood Re currently provides cover to those most exposed to flooding, this initiative has a defined lifespan. It will only run until 2039.

The huge leap in properties which now fall into the risk bracket that Flood Re needs to respond to will only put more pressure in the risk pool and on insurers.

Although Packham said we are not feeling enough pain associated to flood risks, I think there will be many in the industry that strongly disagree.