ABI call for a 25-year flood management strategy

Commenting on today’s call from the Association of British Insurers for a 25-year flood management strategy, Richard Mason, director of insurance at price comparison site moneysupermarket.com, said: " The ABI has fired a shot across the Government's bow, and it must act urgently. If not, the chances are that insurers large and small may withdraw their support for flood risk areas and stop insuring them.

"ABI members facing claims far exceeding the premiums they are receiving are restless with the Government's approach to flood defences. Demand is strong for comprehensive home insurance across the UK, especially in flood risk areas. moneysupermarket.com saw a 300 per cent increase in home insurance applications in affected areas immediately after the flooding earlier this year, rising to seventeen-fold in some of the hardest hit areas.

"If the Government wants to ensure flood risk areas remain insured and at affordable and competitive premiums, it needs to make the right decisions now, or people in flood risk areas will face a very uncertain New Year."