Insurers irate at slow government flood progress

Insurers are “pretty frustrated” at the government’s slow progress on tackling flood risk, according to ABI property committee chairman and Ageas chief executive Barry Smith.

The department for environment, food and rural affairs (Defra) has dropped hints that it might focus on subsidising property premiums in flood-prone areas or bolster flood defences, but has not made a decision yet.

Smith said: “The ABI been pressing Defra for 15 months or so, and to be perfectly frank I don’t think we’re any closer on what they’re willing to support.

“We are pretty frustrated at the slow process and the uncertainty and ambiguity from certain parties, including Defra.”

However, Smith said he was keen for any solution to go beyond the limit of the statement of principles, which expires in June next year.

The statement is a contract under which insurers agreed to offer flood insurance as part of standard buildings and contents packages provided the government spent money on flood defences.

“The statement of principles was always only a sticking plaster, it was never a long term solution,” Smith said. “What we have got to come to is a new solution.”