§ Baroness Turner of Camdenasked Her Majesty's Government:
Whether they are satisfied with the progress made in improving flood defences in view of reports that insurers are unwilling to provide cover in flood-prone areas. [HL1426]
§ Lord WhittyThe Government maintain close links with the insurance industry to help ensure continued availability of affordable flood cover. There is an agreement among Association of British Insurers (ABI) member companies that they will continue to provide flood cover, except in exceptional circumstances, for domestic properties and small businesses which they currently insure during 2001 and 2002. Cases where there is an alleged breach of this agreement have been referred by DEFRA to the ABI for investigation. However, it must be recognised that insurance companies need to take a commercial decision as to what risk they will cover and on what terms. Also, the insurance industry is a competitive one and customers may need to shop around to obtain the best deal.
My honourable friends the Parliamentary Under-Secretary of State (Commons) and the Economic Secretary to the Treasury met the ABI on 5 September to discuss our mutual aim of ensuring that affordable flood insurance cover continues to be generally available after December 2002. Further discussions between officials have taken place.
Together with the flood defence operating authorities, we are reducing the risk of flooding and are communicating this to the insurance industry. We are reducing the risk through substantial increases in investment in flood and coastal defences (which now totals over £400 million a year). Flood defences are being repaired, renewed, maintained and improved. Flood warning arrangements are continually being improved. The Government have issued strengthened guidance to local planning authorities on control of development in flood risk areas and are reviewing the financial and institutional arrangements under which the flood defence service is delivered.
148WAThe additional funding is being used in particular to accelerate a number of river flood defence schemes and to provide for whole catchment studies to proceed. However, as taxpayers' money is at stake, it is necessary to ensure that schemes are properly appraised, that a range of options are considered and the potential impact of defences elsewhere on the coastline or in the catchment is considered. Such problems are rarely amenable to standard solutions.