Intense negotiations between brokers and Jordan-based Arab and German Insurance (AGI) are to be relaunched in an attempt to recover hundreds of thousands of outstanding claims.
This latest move, which has been hailed "a success" by Biba, comes more than two years since the fiasco first became public.
The scenario emerged in the aftermath of the Boscastle flood when it became clear that AGI had made a low level settlement offers or refused to pay claims of those who had suffered flood damage to their homes.
Peter Staddon, head of technical services at Biba, has been involved in ongoing discussions with the executive director of AGI, which escapes FSA regulation because it is an overseas domicile.
He said: "Following my continued discussions, which now seem to be bearing fruit, Biba has been invited to ask it's members, who have been having difficulty with claims and premium refunds, to make contact and to detail their case.
"I can't pre-judge the claims, but I would like to think [AGI] will address them in the correct way."
Staddon added that he is trying to keep communications open and "will not be taking his foot off the pressure with the distribution channels."