Daily Insurance Industry News
Daily Insurance Industry News
Monday 24th of September 2018
October 10, 2007

ABI campaign accelerates flood defence review

by Gill Montia

Story link: ABI campaign accelerates flood defence review

The Association of British Insurers (ABI) has been successful in persuading the government to review its investment in Britain’s flood defences, ahead of schedule.

The review was to have taken place 2008 but will now be completed before the end of the year.

The decision follows a campaign by the ABI and threats from leading insurance providers that they would considering withdrawing household cover in areas with a high-risk of flooding, if the Government failed to act.

The Government has an agreement with insurers, known as the Statement of Principles, which contains a promise by insurers to underwrite flood risks in return for investment in the flood defence network.

Earlier this week, the Chancellor of the Exchequer, Alistair Darling, pledged a £2.15 million investment in the UK’s flood defences, by the end of 2011.

However, ABI members, including Lloyds TSB and Norwich Union, are insisting that additional funds must be found.

Speaking on behalf of ABI members, Stephen Hadrill, its director general, said “We want to be able to continue to provide cover and we want to be able to do that on the basis of risk. All we are looking for is a sensible plan over a period of years”.


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