British insurers re-affirm commitment to proposed Flood Re, while River Thames flood warnings downgraded

After facing the wettest January in England since 1776, the British government announced that four of its Cabinet ministers met Tuesday with executives from the Association of British Insurers (ABI), and from some of the major carriers, in order to ensure that the government and the industry are “fully co-ordinated” in helping people affected by the floods.

“The CEOs of Aviva, Direct Line Group, Axa, Lloyds Banking Group and Ageas, along with the Claims Director of RSA and the Association of British Insurers restated their commitment to voluntarily maintaining the 2008 Statement of Principles on flood insurance until the guaranteed affordable flood insurance scheme, Flood Re, is delivered in 2015,” the British coalition government announced in a press release. “It was agreed that there would be monthly meetings between the government and the insurance executives to make sure everything possible was being done to provide prompt and full payment to customers, and to ensure that government and the industry were fully co-ordinated in helping flood victims.”

Last week, the Environment Agency had issued 14 severe flood warnings for the River Thames, which have since been lifted.

“River levels are expected to remain high for several more days, especially along the Thames and Severn, but levels are starting to gradually fall this week,” the Environment Agency stated Tuesday. “Severe flood warnings for the Thames were downgraded yesterday in response to this improving picture, but property could be flooded for some time.”

Soldiers of 36 Royal Engineer Regiment have been helping flood victims in Egham, Surrey. Photo by Russ Nolan. Courtesy of the British Army

The agency noted that since Jan. 29, about 1,700 properties have been flooded, while more than 207,000 properties “have been defended from flooding.”

Industry officials attending the meeting Tuesday included: Maurice Tulloch, CEO Aviva UK and Ireland; Paul Evans, chief executive officer of Axa UK and Ireland and deputy chairman of ABI; Craig Thornton, director of general insurance, Lloyds Banking Group; Andy Watson, chief executive officer of Ageas UK; David Pitt, claims director of RSA; and Tom Woolgrove, managing director personal lines of Direct Line Group and chair of the Flood Re Project Board.

The Associated Press reported Saturday that a woman died in London when part of a building collapsed on the minicab she was driving, during a wind storm. AP also reported a passenger on a cruise ship died after winds caused large waves.

Photo courtesy of the Office of the Prime Minister.

Tuesday’s meeting involving insurance officials was attended by Dan Rogerson, Britain’s parliamentary under secretary of state for water, forestry, rural affairs and resource management; Communities Minister Brandon Lewis; Oliver Letwin, minister for government policy; and Jo Johnson, assistant whip and parliamentary secretary.

Last June, ABI signed a memorandum of understanding with the government on the development of Flood Re, a not-for-profit fund that would offer coverage, to clients at high risk of flood, who might not otherwise be able to afford coverage. All home insurers would be subject to a levee of about £10.5 per year on all home insurance policies, and there would be a cap on premiums. Premiums caps would range from £210 to £540, depending on the home’s council tax. As of Tuesday, a Pound was worth about $1.83.

Flood Re is intended to cover losses up to those expected in a 1-in-200 year flood but would not apply to homes built after January 1, 2009.

“The insurance companies assured ministers that there has been no evidence of insurers raising premiums for flood risk properties in advance of Flood Re starting in 2015,” the Prime Minister’s Office stated Tuesday in a press release. “They also advised that there is currently sufficient capacity of loss adjusters and specialised drying equipment to begin the repair and restoration process as soon as possible after the flood waters recede (typically starting with a loss adjustor arriving within 3 to 7 days of the time at which the water has receded and access is feasible), and that they would keep this under review.”

The government noted that “England has faced the wettest January since 1766,” and announced up to £10 million for hardship funding for small and mid-sized businesses in areas affected by the floods.

“Eligible businesses will be able to claim for funding for things like immediate clean-up costs, materials, and exceptional costs to help them continue trading,” the government stated Monday.

About 3,5000 members of the British Army, Royal Navy, Royal Marines and Royal Air Force are also providing flood relief.

AP reported earlier that Prince Harry and Prince William, in a private visit, helped to unload sandbags in Datchet, west of London.