ABI hits out at further government flood delays

The ABI has hit out at continued government delays to fixing the flood insurance market in the UK.

Speaking at the National Flood Forum conference today, ABI head of property insurance James Dalton said: “Insurers, the government and groups like the National Flood Forum all want to see a sustainable, affordable long-term market for flood insurance in the UK.

“But we are running out of time to ensure that people in high flood risk areas can continue to get affordable flood insurance when the Statement of Principles expires in June 2013. It is widely recognised that the current industry agreement with the government is unsustainable, has thwarted choice for consumers, and is well past its ‘best by’ date.

“No action is no option. Insurers are determined to do everything possible to ensure that flood insurance remains as widely available to our flood vulnerable communities. But this cannot be achieved without government help, as happens in other countries.” 

Last Friday environment minister Richard Benyon said the government was still working on making a decision.

Benyon said: “I am concentrating my efforts to secure an agreement that will lead beyond June 2013, when the Statement of Principles comes to an end.”

He added that he wanted insurers and brokers to make better use of flood risk information provided by the Environment Agency every quarter.

Some insurers use that information well, but some only use the data once a year and others ignore it in favour of postcode rating, he said.

“There are no state secrets involved in this; the Environment Agency has the information, and it makes it available on a quarterly basis, so it should be possible for the insurance companies to use it when calculating their premiums,” Benyon added.