Reforming the UK flood insurance regime. The breakdown of a gentlemen's agreement

The floods of summer 2002 in Central Europe and China, recurrent earthquakes in Turkey and Japan and frequent hurricanes in the USA and Central America challenge the economic fundaments of the societies exposed; unexpected effects through economic, financial and political "channels" make intelligent risk management mandatory. One important element of an intelligent risk management strategy is an insurance system that is able to adapt to new situations triggered by eg, climate change.