Flooding: Insurance

Lord Campbell-Savours Excerpts
Wednesday 26th June 2013

(11 years, 4 months ago)

Lords Chamber
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Lord De Mauley Portrait Lord De Mauley
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My Lords, my noble friend is unique among your Lordships in that he seems to have both ears to the ground at the same time. As I said, we are at an advanced stage in discussions with the insurance industry about the future of flood insurance. We aim to announce future measures shortly to ensure that households can continue to access affordable flood insurance.

Lord Campbell-Savours Portrait Lord Campbell-Savours
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My Lords, why should not all policyholders carry the risk? It would mean a very marginal difference in premiums.

Lord De Mauley Portrait Lord De Mauley
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Yes, my Lords. We are trying to arrange a system where those at the highest risk who have difficulty affording the insurance effectively have a continued cross-subsidy from wider policyholders. It is a very complicated negotiation, as I think that the noble Lord is effectively pointing out, and we have a lot of interests to keep in mind here.