£1bn flood payout by insurers
Ministers from three Government departments, chaired by Floods Recovery Minister John Healey, met the Association of British Insurers again yesterday at the Treasury to take stock of continuing repair efforts after last summer's flooding
A total of £1 billion of claims from the flooding last summer have now been paid out by the insurance industry and more than half of the fifteen thousand households who were in temporary accommodation have now been able to return to their homes. Three quarters of all households are expected to have returned home before Easter.
In the coming weeks John Healey will meet top managers from the insurance companies to discuss continuing progress in getting those still in temporary accommodation home as quickly as possible.
At the meeting the ABI and Government also formally confirmed a UK-wide review of the Statement of Principles to ensure it is up to date and fit for purpose.
The Government and the ABI both want to ensure that flood cover remains as widely available as possible for the public. The Statement of Principles commits insurers to continuing to offer flood insurance to existing customers where the flood risk is adequately managed.
However following the major floods of summer 2007, and in light of the increasing number and extent of floods linked to climate change, the Government and the insurance industry have begun work to undertake a fundamental review of the statement.
Stephen Haddrill, Director General of the ABI, said: "The insurance industry played a major role in helping our country recover from the terrible floods of last summer and will pay out £3bn compensation to affected customers. Insurers want to continue to provide flood cover as standard to as many customers as possible. The statement can only continue if the Government commits to addressing the lessons of last summer fully. That will require major new total investment from Government and others."
The scope of the review will include partnership working to:
* Assess the information and mapping currently available and ensure better understanding of flood risk
* Agree the approach to a long term strategy in order to provide effective flood risk management
* Promote increased resilience, prevent inappropriate development in high flood risk areas, and address the interim conclusions from the Pitt Review on the availability and uptake of insurance
The aim is to finalise the review during the summer. In the meantime ABI members will continue to adhere to the existing Statement of Principles.
In recent weeks the Government, local councils and the ABI agreed a comprehensive action plan to help people still badly affected by the floods.
Local Authority action:
* Checks on those in caravans to assess needs
* Better information to householders still out of their homes
Insurance Industry action:
* Continued emphasis on effective information to householders about how long a return home may take
Central Government action:
* Making our central homelessness advisors available to flood-affected local authorities
* Inviting councils to adapt their timetables for the multi-billion pound decent homes programme to help get their tenants back into fully renovated homes as quickly as possible
* Consider what more support we can give to the worst hit areas
