BRITISH insurers do not intend to extend an existing agreement providing cover to flood-hit homes, boosting hopes that a new deal to provide universal household insurance is imminent.
The Association of British Insurers (ABI) yesterday told City A.M. that there are “no plans” to continue with the existing Statement of Principles which guarantees access to insurance for 200,000 homes at high risk of flooding. The agreement was due to run out at the end of June but has been extended by a month after negotiations on a new deal overran.
The ABI also confirmed that Oliver Letwin, the minister responsible for leading negotiations on the government’s side, will deliver a keynote speech at the organisation’s annual conference on 9 July. Although the trade body insists this announcement is completely coincidental they admit negotiations are now at a “crucial stage”.
Meanwhile, a government spokesman confirmed negotiations are at an advanced stage and they “hope to resolve the remaining issues soon”. Representatives of two leading British insurers yesterday told City A.M. that they expect to see a deal very soon.