ABI Launches Flood Broadside At Ministers – Director-General Condemns Government’s “Frustrating” Flood Risk Policies

The director-general of the ABI, Otto Thorenson, has attacked the government’s refusal to subsidise flood cover in high risk properties.

Thorenson told The Times the ABI was committed to working with ministers following a written statement to Parliament from the Department for Environment, Food and Rural Affairs which suggested that ministers plan to focus on preventing flood risks rather than subsidising premiums. A DEFRA spokesman said subsidies had not been ruled out.

Thorenson said: “No country in the world has a free market for flood insurance which provides affordable and accessible cover for high risk households without some form of government involvement.”

The spat comes as the insurance industry and government prepare to hammer out a replacement agreement over flood insurance for the statement of principles, which expires in 2013.