Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 23rd of January 2018
January 31, 2012

ABI issues flood risk ultimatum

by Gill Montia

Story link: ABI issues flood risk ultimatum

The Association of British Insurers (ABI) has launched a political campaign highlighting the scale of flood risk faced by constituencies across England and Wales.

Quoting the latest Environment Agency flood data, the ABI claims that unfulfilled Government pledges to tackle the rising flood threat have left thousands of homes with a greater than 1 in 75 chance of flood in any given year.

Boston and Skegness in Lincolnshire is the constituency with the most homes at risk, followed by the Vale of Clwyd, Folkestone and Hythe, then Windsor.

The findings are being used to reinforce the Association’s warning that the insurance industry’s voluntary flood agreement with the Government, which runs out in June of next year, will not be renewed unless a new sustainable long-term solution is in place.

The ABI’s director general, Otto Thoresen, comments: “We are running out of time to make sure that people in high risk areas are properly protected from the devastation flooding can cause and the ball is now in the Government’s court.”

In full, the constituencies named as having the most homes at significant flood risk are as follows:

Boston and Skegness, where 7,550 homes are at significant flood risk
Vale of Clwyd 7,339
Folkestone and Hythe 7,196
Windsor 7,125
Runnymede and Weybridge 6,541
Clwyd West 6,160
Aberconwy 5,500
Nottingham (south) 5,043
Great Yarmouth 4,965
Sittingbourne and Sheppey 4,295
Leeds (central) 4,209
Canterbury 4,199

The ABI adds the following statement: “The current Flood Insurance Statement of Principles agreement with the Government agreed back in 2000 as a short-term measure ends in June 2013.

“Until then insurers will continue to offer flood insurance to existing customers including those at high risk (up to a 1 in 75 year flood risk probability).

“It will not be renewed as it grossly distorts the market as: people in lower risk flood areas pay more to subsidise those at higher risk; customers in high risk areas are tied to their existing insurer, and those insurers covered by it have ended up with a disproportionate number of high flood risk properties.”

 

News posted:



Related stories to ABI issues flood risk ultimatum: