Flood Risk: ABI extend commitment to Statement of Principles for a further month

The Association of British Insurers (ABI) has announced that it will continue, on a voluntary basis, to offer flood cover to households and small businesses under the Statement of Principles, until 31st July 2013.  The Statement of Principles is an agreement between the ABI and the government by which the ABI members agree to offer flood cover on affordable terms in return for a government commitment to fund flood defences in vulnerable areas.  The Statement of Principles technically expires on 30th June 2013.  The ABI has agreed to extend the period for an additional month, to allow discussions with the government over a new flood cover regime to continue.  Due to the increased incidence of flooding, some insurers would prefer to return to a risk-based market, so that they can decide whether to insure vulnerable properties and at what price.

For further information, see the ABI publication The Future of Flood Insurance: What you need to know.

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