UK insurers yet to reach agreement with Government over affordable flood insurance
With the impacts of flooding having far reaching financial consequences for both home owners and insurers over the last five years, UK insurers are seeking government support to enable them to protect both their business and the lives of home owners living in flood risk areas.
Having such high profile clients in the insurance sector such as AXA, Towergate Partnership, BGL Group (owners of comparthemarket.com, Bennetts Insurance and Junction), Ageas and ACE, we naturally have an interest in these topics and watch with interest as negotiations between the Government and The Association of British Insurers stall.
According to the guardian ‘Hundreds of thousands of flood victims face steep increases in their home insurance costs or risk losing it altogether, following a breakdown in talks between the government and the insurance industry.
The collapse in talks was branded “outrageous” by charity the National Flood Forum (NFF), which said being refused insurance “could spell financial ruin for thousands”.
Insurers agreed a statement of principles with the government in 2008 to renew cover for flood victims, usually at a very high premium and with an even higher excess. But this agreement runs out on 30 June 2013, when householders face being refused cover unless the government and the industry come to a new agreement.
The Association of British Insurers (ABI) recently proposed a scheme to make sure 200,000 households affected by flooding will be able to renew their policies next year. It meant any house that would normally incur a much higher premium because of flood risk would have the extra paid out of a levy on every home policy in the UK.’