News - Insurers pushed on flood claims
Commercial property insurance from the insurance industry have met ministers to see how best to deal with the cost of claims following the recent floods.
UK insurers are facing a bill of about 1.5bn after June’s floods.
The flooding is estimated to have hit 31,200 homes and 7,000 firms, mainly in the Midlands and northern England.
Ferry operator P&O have told the BBC they have been approached by a loss adjuster to provide accommodation for displaced flood victims from Hull.
The people of Toll Bar have been affected more than can be imagined
The company confirmed that the request involved providing a specialist accommodation ship which would be berthed in King George Dock.
Political drive
Earlier, Communities Secretary Hazel Blears told the House of Commons that pressure was being applied to insurers.
She said: “I hope the House will appreciate how seriously we’re taking this issue around insurance to make sure that claims are dealt with speedily, fairly, and that there is sufficient capacity to really get on with this, because this is a top priority for members of the public.”
Malcolm Tarling, a spokesman for the Association of British Insurers (ABI) described the meeting with ministers as “very constructive”.
“We believe 99% of properties have now been visited by an insurance representative or loss adjuster,” he said.
“The key priority right now is to make sure that anyone whose is property is claim claim dollar insurance property secret settlement successful top
gets into alternative accommodation and to help business get back to trading.”
Mr Tarling added that in the longer term, the construction industry should be given incentives to ensure all property casualty insurance job homes were better protected from flooding and local councils should ensure drainage was better.
Ministers have already met local councils to discuss how to spend the 14m relief package announced by Prime Minister Gordon Brown.
Spending shortfall
Meanwhile, Environment Secretary Hilary Benn has said the government is to increase flood defence spending from 600m this year to 800m a year in 2010/11.
Nevertheless, insurers have been critical about the level of government spending on flood defences.
Last year there was a 15m shortfall in the amount of money spent on flood defences.
Flood in the UK, we believe, is right up there as a major world-class risk
Under a deal struck between the government and the insurance industry in 2005, insurers agreed to continue to offer cover for homes at risk of flood.
But if the government fails to fulfil its side of the bargain, people at risk of flooding could be refused cover by insurers.
Insurers have also called for more discount property insurance on the country’s flood defences, in order to help them offer cover.
Insurance threat
Some firms, it seems, are already student property insurance who they should insure following the recent floods.
German insurer Allianz said the recent floods were a “wake-up call” for the industry.
“Flood in the UK, we believe, is right up there as a major world-class risk,” Clement Booth, chairman of Allianz UK, told the Financial Times newspaper.
He added it was too early to say how much insurance premiums would increase by.
Filed by admin at January 29th, 2008 under Property insurance