With over 300 flood warnings in place across the UK, the Association of British Insurers (ABI) is calling on the Government to commit to a joint solution to ensure long-term affordable flood insurance for high-risk households.
The ABI describes the current state of talks with ministers as at an “impasse” following the Government’s refusal to consider providing a temporary overdraft facility to a proposed not-for-profit special insurance fund that would protect 200,000 high-risk homes.
The ABI’s director of general insurance, Nick Starling, says: “It is … vital that insurers and Government tackle this issue together – this is not just a problem for insurers.
“No country in the world has a free market for flood insurance with high levels of affordable cover without some form of Government involvement.”
The ABI also states that, contrary to some media reports, the industry is not asking the Government for support funding of any kind.