Defra boss wants to end talks “as soon as possible”
The government could use its Water Bill to bring in the ABI’s Flood Re solution for the future of flood insurance, according to Department for Environment, Food and Rural Affairs (Defra) minister Richard Benyon.
Responding to a question from an MP, Benyon said: “The government has made significant progress in discussions with the Association of British Insurers on how its Flood Re 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.
“ABI members have voluntarily agreed to continue to abide by the statement of principles for a further month, to 31 July, to allow more time to reach agreement. If the ABI’s proposal cannot be made to work, other options are also available. The Water Bill is the obvious vehicle to take any powers needed.”
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. Numerous properties could be left without affordable flood insurance if a new deal is not negotiated or the statement extended.
Neither the ABI nor the government want to renew the statement.
The Water Bill is designed to reform the water industry to make it better for customers and increase its resilience to hazards such as drought and floods.
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