ABI and Defra agree long-term flood strategy

by Gill Montia

Story link: ABI and Defra agree long-term flood strategy

The Association of British Insurers (ABI) has reached an agreement with the Department for Environment, Food and Rural Affairs over a long-term flood plan.

Both organisations have made a commitment to improve understanding of flood risk, while the Government implements a strategy for flood prevention and future policy and funding.

The key elements of the agreement are as follows:

The Government will put in place a long-term investment strategy, which will set out strategic flood prevention aims and assess future policy options and funding needs.

Planning systems will be designed to prevent inappropriate development in flood-risk areas and there will be measures to raise public awareness in areas where flood risks are significant.

Property owners will be provided with more information about how to obtain flood insurance and take sensible precautions to avoid the dangers of flooding.

Steps will be taken to promote home insurance to low-income households.

The insurance industry has pledged to make flood insurance for both homes and small businesses available under household and commercial insurance, where the flood risk is no worse than a one in 75 (1.3%) annual risk.

It has also agreed to offer flood cover to existing domestic and small business customers at significant flood risk, providing there are plans to reduce the risk to an acceptable level within five years.

Last year, flooding claims cost the ABI’s members around £3 billion.