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Saving For a Space Ship

Environment Agency Calls On Insurance Co's To Flex Muscle

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http://news.bbc.co.uk/1/hi/programmes/6986985.stm

Good text article & program on Radio 4 tonight .

After The Floods is broadcast on BBC Radio 4 Tuesday 11 September 2007 at 2000 BST, repeated on Sunday 16 September 2007 at 1700 BST.

His boss the Environment Agencys' chief executive Baroness Young believes under new planning rules which enable the Secretary of State to call in contentious developments the seriousness of the country's resolve will be tested.

But the Environment Agency wants to make doubly sure that such developments never get the green light by calling on the insurance industry to flex its muscles.

"We want the insurance industry to be as tough as they can by refusing to insure residential and commercial property built against our advice," said Baroness Young.

The insurance industry could already be on a collision course with the government with warnings that some properties in the UK may soon be too costly to insure unless the government "puts its money where its mouth is."

The industry has said there are 570,000 properties at high risk of flooding.

Flood defences

After the floods of 2000 the Government came up with an agreement known as the statement of principles which ensures that the 500,000 plus homes receive cover as long as the government invests adequately in flood defences.

The agreement is due to expire in 2010.

The Association of British Insurers fear the government is not keeping its side of the deal.

Jane Milne, head of property at the ABI said there are parts of the country that could become too costly to insure.

"We can't deal with repeated £30,000 or £40,000 claims," she said.

"Ultimately there are some locations where the frequency of flooding means insurers cannot sustain insurance."

Edited by Saving For a Space Ship

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Bump, on shortly at 8pm on Radio 4

"After the Floods"

Listen live http://www.bbc.co.uk/radio4/news/pip/yl9yh/

After the wettest summer in England for over 240 years, the Government remains committed to providing millions of new homes and refuses to rule out building on flood plains. Are we just storing up trouble?

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Jane Milne, head of property at the ABI said there are parts of the country that could become too costly to insure.

"We can't deal with repeated £30,000 or £40,000 claims," she said.

Thats the whole point of insurance quotes, they base their prices on the statical probability of the insured making a claim, how else have they been doing it, is she suggesting by her quote above that her members have been simple plucking figures out of thin air then crossing their fingers for the rest of the year hoping it doesn't rain too much.

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I've just posted a related thread about a very interesting book & short film, just published. Part of which, studied how corporations, politicians & v.i.'s used the disaster as a opportunity to exploit & remodel the New Orleans city & public schools etc. for private gain after the flood .

It'll be interesting to see what happens in the uk flood re-building by comparison, imo.

http://www.housepricecrash.co.uk/forum/ind...showtopic=55373

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Thats the whole point of insurance quotes, they base their prices on the statical probability of the insured making a claim, how else have they been doing it, is she suggesting by her quote above that her members have been simple plucking figures out of thin air then crossing their fingers for the rest of the year hoping it doesn't rain too much.

She means that if claims of that magnitude start to occur regularly then the risk becomes uninsurable. Consider that if there was a flood every 5 years or so, then the annual premium would be around £10,000. Who exactly is going to pay that for their home insurance...?

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