The flood insurance agreement for the industry expires on 30 th June, which was set to leave properties currently insured against flood damage without cover.
The uncertainty surrounding the agreement’s future prompted Cluttons to call for continue talks earlier this week.
Cluttons partner, Ian Paton, commented: “The lack of clarity regarding the provision of flood insurance has reached crisis point. The government is fully aware of the threat floods present to the UK and it is unclear why it is not addressing the issue – the cost to the taxpayer to introduce robust defences is significantly less than the cost of dealing with the devastating damage flooding can cause. It is time for talks between the government and the Association of British Insurers to reach agreement now.”
Writing a letter to the government amid ongoing discussions, though, the ABI has confirmed that it will extend coverage until the end of July.
Otto Thoresen, Director General, Association of British Insurers, said: “The Government and the ABI continue in constructive discussions on the future of flood insurance, specifically on how the components of the ABI’s Flood Re proposal can be designed to best meet the objectives of the Government, the insurance industry and, most importantly, the needs of those at risk of flooding.
“There are still important issues to resolve and no deal has been reached, but negotiations are advanced and we will bring negotiations to a conclusion as soon as practicable. After the Statement of Principles expires on 30th June, ABI members have agreed that they will continue to meet their commitments voluntarily for one additional month until July 31st, to ensure that their customers across the UK can continue to access insurance while discussions are concluded.”
Thorensen’s letter added: “Whilst a deal has not been reached, we are keen to bring negotiations to a conclusion as soon as is practicable.”
For more information on the flood insurance agreement, visit https://www.abi.org.uk
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