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About Us
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New & insight
Pension Insurance Corporation plc ('PIC'), a specialist insurer of defined benefit pension schemes, has today warned that parts of England could risk becoming unviable for future infrastructure and housing development, unless the Government takes a more ambitious approach to flood resilience.
PIC argues that unless flood risk is managed in a way that supports development rather than deters it, England may not be able to deliver the homes, infrastructure, and urban regeneration it needs in some of the most economically productive parts of the country. Without reform, over time key areas of the country could go into terminal decline.
The warning is discussed in a new report, ‘Hard Rain: Building climate resilience before the storm’, which is being launched at UK REiiF, the UK’s real estate investment and infrastructure conference. The report cites examples including the Thames Barrier, and flood defences in Leeds and the Netherlands and sets out 17 policy recommendations aimed at helping the Government and institutional investors work together to fund flood resilience, unlock development, and protect communities.
The recommendations include:
(Click to download report)
The challenge the UK faces is not a lack of capital to invest in flood resilience, but a lack of projects that remain viable once flood risk is properly accounted for. The report argues that, without reform, that viability gap could widen over time - but that a more coordinated approach could unlock a significant pipeline of projects.
The pension risk transfer ('PRT') market, of which PIC is a leading player, is expected to take on up to £600 billion of defined benefit pension scheme assets over the next decade, with around £200 billion of this available for UK infrastructure investment, including flood resilience.
Hayley Rees, Managing Director of PIC Capital, said: “England needs better infrastructure and more homes, but too often flood risk is treated as a reason not to invest rather than a problem to solve. If that continues, more places could become harder to develop, harder to insure and less attractive to private capital.
“This report shows there is another way. With the right policy changes, we could reduce risk, unlock private investment and help deliver the water, housing and regeneration projects communities need.”
PIC is a long-term investor in UK infrastructure, including the first UK reservoir to be built for 40 years and the Haweswater Aqueduct Resilience Programme. These types of assets provide the secure, long-term cashflows that match payments to PIC’s policyholders over coming decades. PIC has invested £15 billion in UK housing and infrastructure to date.
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Notes to Editors:
Media enquiries:
Chelsey Wheeler – Public Relations – Senior Manager
Wheeler@pensioncorporation.com
+44 (0)7586 686414
About PIC
The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure retirement incomes through comprehensive risk management and excellence in asset and liability management, as well as exceptional customer service. At full year 2025, PIC had insured 438,000 pension scheme members and had £54.8 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension schemes. At 31 December 2025, PIC had made total pension payments of £19.3 billion to its policyholders and had invested more than £15 billion in the UK economy, creating considerable social value. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com.
