Cameron cracks the whip over flood insurance

Prime minister David Cameron stood up in the House of Commons yesterday and made the bold promise that he would make sure insurers paid flood claims quickly.

This is, of course, what MPs and homeowners want to hear, but the premise is dubious and the promise sounds flat.

There has been no sign that the insurance industry is being slow to react. All the insurers contacted by Insurance Times this week have shown a real urge to get started and sort out claims quickly.

The industry has also learnt a lot from past floods, which will help speed things up this time round. The floods in Cockermouth and Tewkesbury taught it much about how to handle claims and distressed policyholders, so the response to the recent flooding should be a lot smoother.

Political theatre

To be fair to homeowners, anyone with a flooded house will want things put right instantly, and any delay can be frustrating. But the truth is that sorting out flood claims is a lengthy process.

To be fair to Cameron, prime minister’s questions is a quickfire and daunting piece of political theatre, so reading too much into what he said should be avoided.

Cameron himself, however, singled out drying time as an example of what lengthens the flood claims process, so clearly he knows enough about the issue to cut the industry some more slack.

The other question is: what power does Cameron have to make insurers react any faster? Short of applying pressure, it is unlikely there is anything he can do.

Defra drags its feet

Speaking of applying pressure, perhaps if Cameron really wants to get involved with flood insurance, he should think of leaning on the Department for Environment, Food and Rural Affairs, which is still dragging its feet over a decision on the future of flood cover.

Putting pressure on the Treasury would also be a good idea, since it is also involved in the decision. Either way, I’m sure the industry agrees that it’s about time politicians took a deeper look at insurance before making rushed statements.