CMS: Communications management for sustainability

‘The Government and insurance industry are continuing to make progress towards a new agreement on the future of flood insurance, Environment Secretary Caroline Spelman confirmed in a Defra debate in Parliament last week. The new approach under discussion aims to improve upon the current agreement between the Government and the industry – the Statement of Principles – by ensuring both the availability and affordability of flood insurance for the first time.

As part of discussions, the Government is now considering how the existing cross-subsidy that takes place within the insurance industry can be adjusted to make sure insurance prices remain affordable. Most insurance companies already raise a small sum from policy holders to cover the cost of insuring homes at high risk of flooding. The insurance industry has asked the Government to formalise this arrangement, so that all households can continue to get affordable insurance, and to correct a current inbalance in the market whereby some insurers are at an advantage in being able to solely offer products to low risk customers whereas others currently have to offer cover to many high risk properties.’ To read more go to:

http://www.defra.gov.uk/news/2012/07/11/progress-on-affordable-flood-insurance/