AXA head says established household insurers are penalised by current flooding agreement
Liberal Democrat leader Nick Clegg leader addressed his annual party conference this week, where the ABI pressed the coalition government’s junior partner over flooding.
AXA head of customer risk managment Doug Barnett told the ABI’s Lib Dem conference flooding fringe session that established insurers were penalised by the ‘statement of principles’ agreement with the government to continue to provide cover in flood risk areas.
New entrants to the market were less exposed to costly flooding claims because they did not have existing books of business in such areas, he said.
Barnett, who chaired the session, also pointed to unfinished business from the recently passed Flood and Water Management Act, highlighting the axing of provisions to address issues caused by flooding from neighbouring land. The provisions were dropped from the bill when it was pushed through immediately prior to this year’s general election.