AN arrangement to provide insurance cover for residents in flood-risk areas, such as parts of Morpeth, has been extended whilst negotiations continue to try and put in place a new system.
Association of British Insurers (ABI) members have today confirmed to the Government that they will continue to voluntarily meet their commitments to offering flood insurance for an extra month after the current industry agreement – the Statement of Principles – expires on June 30.
Both sides believe a better system should be in place, but nothing has been agreed and talks are on-going to try and find a solution that will make cover more affordable without being unfair on taxpayers.
A Morpeth Flood Insurance Working Group, including the Morpeth Flood Action Group, the town council and the Chamber of Trade, drew up a proposal for a scheme to spread the risk of flooding across all policyholders, with a community flood levy.
Some of its ideas were included in the ABI’s ‘Flood Re’ submission, which would see a not-for-profit fund run by insurers with a temporary overdraft facility from the Government.
ABI Director General Otto Thoresen said: “The Government and the ABI continue in constructive discussions on the future of flood insurance, specifically on how the components of the ABI’s Flood Re proposal can be designed to best meet the objectives of the Government, the insurance industry and, most importantly, the needs of those at risk of flooding.
“There are still important issues to resolve and no deal has been reached, but negotiations are advanced and we will bring negotiations to a conclusion as soon as practicable.
“After the Statement of Principles expires on June 30, ABI members have agreed that they will continue to meet their commitments voluntarily for one additional month until July 31 to ensure that their customers across the UK can continue to access insurance while discussions are concluded.”