Tuesday, May 8, 2012
Flood-risk households in the UK await insurance guarantee
Lisa Bachelor in the Guardian (UK): Flood alerts remain in place in several parts of the country, but there is at last some good news for nervous householders in flood-hit areas who are a step closer to the assurance that their properties will continue to be insured.
The government is looking at two proposals put forward by the insurance industry that would see cover made available to all households, regardless of flood risk, and is set to announce its conclusions in the next few weeks.
The Association of British Insurers (ABI) is proposing that all homes continue to be covered, but with a cap on the annual premium they would pay. Any property with a risk priced above this cap would get its insurance from a central pool of money. This pool would be paid for by a small levy on every home insurance policy in the country.
...The government is also considering a proposal called Project Noah, put forward by a firm of insurance brokers, which would allow insurers to transfer their residential flood risks, less a small retention, into the international reinsurance market.
"Industry-led solutions that allow insurers to compete even for the highest risk homes, without government intervention in the market, would give the best value for taxpayers' money," a spokesperson for the Department for Environment, Food and Rural Affairs (Defra) said....
Cutting, flooded after high tide, October 17th, 1883.Original: Thomas A. Walker (1888). The Severn Tunnel. Facing page 134.