Floods: Insurance

Miss McIntosh
To ask the Secretary of State for Environment, Food and Rural Affairs what representations he has received from insurance companies on a review of the statement of principles in relation to flooding.

Mr. Woolas
The Association of British Insurers (ABI)’s Statement of Principles sets out the commitments made by ABI members towards the continued availability of flood insurance cover, together with associated commitments by Government on effective flood risk management. We have a continuing dialogue with the insurance industry at both ministerial and official level and have agreed to work with the ABI to review the Statement over the coming months.

Miss McIntosh
To ask the Secretary of State for Environment, Food and Rural Affairs what plans he has to ensure that people who live in flood risk areas can afford insurance excesses following claims made as a result of flooding.

Mr. Woolas
We are continuing to work with the Association of British Insurers (ABI) to support our mutual aim of ensuring continued widespread availability of flood insurance cover. The ABI’s commitments on this and associated undertakings by Government on effective flood risk management are set out in the Statement of Principles.

Premiums and excesses are not covered by the Statement. These will reflect different degrees of risk and are a matter for individual insurers. Following the recent flooding, a Flood Recovery working group, consisting of representatives from Government departments and the ABI, has been established to consider issues relating to flood recovery and insurance.

The Government have also asked the Financial Inclusion Taskforce to work with the insurance industry to develop options for promoting increased take-up of key insurance products among financially excluded households. The Government will consider the Taskforce’s recommendations in developing a detailed action plan for financial inclusion later this year.