Local MP Stewart Jackson has been briefed by the Association of British Insurers (ABI) over flooding concerns and the future of flood insurance.
A number of areas in Peterborough face very real flood risks which make it difficult to get insurance.
Whilst this Government is committed to making sure people living in households which lie in flood-prone areas are still able to get insurance cover at a reasonable price, Mr Jackson has sought reassurance from the ABI on progress of their discussions with the Government.
To make sure that insurance for homes at risk of flooding remains widely available and affordable, work is underway to establish a successor to the Statement of Principles. The central objective of this work is to reach an agreement with insurers whereby insurance bills remain affordable without placing unsustainable costs on wider policyholders and the taxpayer. There is the potential to deliver a new approach that is better than the current Statement of Principles by for the first time directly addressing the affordability of flood insurance.
This is a complex issue, as insurers themselves recognise, and the Department for Environment, Food and Rural Affairs (Defra) has undertaken to work with the Association of British Insurers to look at ways of providing safeguards. A number of proposals have come forward from the industry and the Government is continuing to consider a range of options.
It is worth recapping that under this Government the country is better prepared than ever before to deal with incidents of major flooding. Despite the savings the Government has had to make as part of dealing with the record deficit inherited, the Government will continue to invest to reduce the risk of flooding especially to those households at the highest flood risk and living in the most deprived communities. Defra expects to spend more than £2.17 billion on flooding and coastal erosion up to 2015. As a result of the investment it is making, it expects to deliver better protection to 145,000 households in this period.
Stewart Jackson said:
“I know a lot of work is going on to seek reassurance on future insurance. And the government is investing in flood defences but this is a very real issue for some of my constituents.
Watching the River Nene swell can be very concerning for my constituents who live nearby.
The Environment Agency, Peterborough City Council, Cambridgeshire Constabulary and Cambridgeshire Fire Service have been doing a lot of work locally to keep residents informed and reassured, I’d like to thank them for that.”
 The current agreement is referred to as a Statement of Principles. In 2008, the then Government accepted that the agreement would conclude in 2013