British Insurers Warn They May Withdraw Flood Cover

The Association of British Insurers (ABI) says the £800m pledge by the chancellor in his Comprehensive Spending Review is less than needed and may mean they can no longer provide flood cover.

In a statement released on their website , Stephen Haddrill, the ABI’s Director General, said:

"The insurance industry is helping tens of thousands of people affected by flooding this summer, but the Government has now failed to play its part. Millions of homeowners and businesses around the country have been let down by the Government’s failure to commit sufficient money to new and improved flood defences.

“Government spending for the next three years is less than we were asking for, even before the floods. It does not begin to address the major issues, including drainage, which were highlighted this summer. The Government will have to increase spending substantially as needs are identified by the Pitt review team."

The insurance industry will be conducting an in-depth review of this summer’s floods. This will form part of the forthcoming review of the ABI Statement of Principles on the Provision of Flood Insurance.