The Association of British Insurers (ABI) welcomes today’s publication of the independent review into flood insurance following last November’s flooding in parts of south Yorkshire.
Commenting on ‘The Independent Review of Flood Insurance in Doncaster’, James Dalton, ABI’s Director of General Insurance Policy, said:
“Amanda Blanc has undertaken a detailed analysis of the availability and affordability of insurance following the devasting flooding that hit Yorkshire in late 2019. The insurance industry welcomes the recommendations in her report on what more can be done to ensure our flood risk communities have the flood insurance protection that they need. We are committed to working together with the community, Government, the British Insurance Brokers’ Association and Flood Re to implement these recommendations in full.
“Being on the front line helping their customers after a flood, insurers appreciate the devastating impact flooding can have on households and businesses, and the worry this brings to those at high flood risk. Insurers responded quickly to the flooding in south Yorkshire last November, dealing with over 4,000 claims and making payments of nearly £150 million to help people recover. They continue to do everything possible to ensure any outstanding claims are resolved.
“The industry learns important lessons from every flood event, to ensure the best possible support for those affected. And we continue to raise public awareness of the widespread availability of affordable flood insurance cover resulting from the Government and insurance industry establishing Flood Re in 2016, which has so far helped over 300,000 flood risk property owners.”
Updated; BIBA’s response for you;
BIBA welcomes the report into the experiences of many residents and businesses affected by last year’s floods and shares the ambition to work with stakeholders to provide easier access to suitable and affordable insurance products to help those living in flood-prone areas.
BIBA has highlighted previously the need for insurance brokers to have more ready access to Flood Re for their clients, particularly as many brokers are rooted in their community and understand the risks and location. They can be pivotal to helping more people find insurance cover against flood. We will work with Flood Re, insurers and software houses to continue to improve access.
Signposting is a proven means of improving consumer access to insurance as seen through the voluntary agreement between Government, BIBA and the Association of British Insurers (ABI) on age and insurance and separately on protection insurance. With this in mind, we look forward to working with the ABI and Flood Re to create a new signposting service to ensure that any household that is eligible for Flood Re but denied cover because of flood risk, or offered insurance only with a flood exclusion, can be referred to a specialist broker who can help them secure affordable, exemption-free cover.
Similarly, we welcome the opportunity to jointly create and promote a voluntary code of practice for our respective members.
We agree with the point made that Government should consider more direct ways to increase the take-up of contents cover for tenants in high flood risk areas. The suggestion of guidance on flood risk and the means of mitigating its effects through insurance is welcome and will help improve uptake.
In summary, we are pleased that the detailed report presents positive recommendations which if implemented will benefit those most impacted by flooding when used alongside flood repair and prevention measures as well as resilient claim repairs made by insurers.
BIBA’ specific comments on relevant recommendations can be found here