§ Norman BakerTo ask the Secretary of State for Environment, Food and Rural Affairs what progress she is making in her discussions with the Association of British Insurers to ensure that residents of Lewes have access to flood insurance at reasonable cost. [27538]
§ Mr. MorleyThe 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 the hon. Member 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 hon. Friend the Economic Secretary to the Treasury and I 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. There have also been further meetings between officials and I expect to meet the ABI again reasonably soon.
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 375W 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.