Flooding: Insurance

Lord Curry of Kirkharle Excerpts

Thursday 29th November 2012 Lords Chamber

[Lord De Mauley]

My noble friend is of course right that there are concerns about the continued availability of insurance to householders—mortgage holders and those looking to sell their houses. We are working with those involved better to understand what the impact on the mortgage market might be. I am certainly encouraged that the Council of Mortgage Lenders is quoted as saying that the focus needs to be on finding a solution on flood insurance, rather than worrying householders unnecessarily about how lenders might choose to react. That has a knock-on effect on the selling market to which my noble friend refers. I also point out that in July, we published a guide to obtain flood insurance in high-risk areas in collaboration with the National Flood Forum and industry representatives, which I think is helpful.

[Lord Curry of Kirkharle]

I, too, encourage the Minister to bring those discussions to a conclusion as soon as possible. I declare an interest: I was chair of a mutual insurance company until the end of last year. I have a further concern. Those companies which have a strong CSR policy could be commercially disadvantaged in the marketplace compared with those who take a purely commercial approach. It is also deeply regrettable that planning permission is still being granted in areas that the Environment Agency has identified as potentially subject to flooding, which is simply aggravating the problem in the long term.

[Lord De Mauley]

The noble Lord makes a couple of good points. In answer to his last one, development in areas of flood risk is permitted only exceptionally, where there are wider sustainability considerations, and must in all cases be safe, must not increase flood risk elsewhere; and, where possible, overall flood risk should be reduced.