Benyon wants deal ‘ASAP’
The government has renewed its pledge to end flood insurance talks soon, according to Department for Environment, Food and Rural Affairs (Defra) minister Richard Benyon.
The ABI has been locked in negotiations with the Treasury and Defra for months to replace the Statement of Principles on flood insurance, which expires on 31 July after being extended.
Under the statement, insurers provide flood cover to homes and businesses in high-risk areas on the condition that the government invests in flood defences.
Numerous properties could be left without affordable flood insurance if a new deal is not negotiated or the statement extended.
Responding to a question about the progress of the talks by Labour MP Iain McKenzie this week, Benyon said: “We have made significant progress in discussions with the ABI on how its FloodRe proposal could be made to work. This is a complex issue and no deal has been reached, but we aim to conclude negotiations as soon as possible.”
Flood Re is the ABI’s replacement for the statement. Flood Re would be a pool of properties at risk of flooding. There would be an agreed entry premium for the pool, and the insurers involved could submit risks to Flood Re or write them cheaper themselves. The scheme could be funded by a government levy.
Neither the ABI nor the government want to renew the statement, which was meant to be a stopgap when it was agreed in 2000.
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