Association of British Insurers.


With the initial estimates for insurance claims after the July floods standing at around £3-4 billion pressure is mounting on the government from the Association of British Insurers (ABI) to address the increasing threat of flood. With the threat to withdraw buildings and contents insurance from property prone to flooding the ABI is signalling to Government that more needs to be done. Over the last 5 years the ABI has been consistently telling Government that not enough is being invested in Flood Protection to prevent the kind of losses they have seen over the last 6 months.  The suggestion is that without massive investment the ABI and its members will no longer be able to cover property built on flood plains.

Most estimates agree that this will leave some 500,000 homes in the UK with no buildings or contents insurance, with knock on effects being felt in the mortgage industry as it means that some mortgages are in danger of becoming void. The withdrawal of Insurance cover by the members of the ABI would effectively mean that mortgages could not be secured on a property that was in danger of flooding and  that the property would also have no insurance cover should it flood again.