Agreement over flooding solution has not yet been reached

Flood protection Yorkshire

PwC has issued a further warning to the government and the insurance industry as talks over a solution to the expiring Statement of Principles drag on.

As yet, no agreement has been reached between the government and the ABI on renewing the flood cover deal, which expires at the end of June.

PwC insurance partner Mohammad Khan said: “As the past few months have shown, households and insurers are still at severe risk of floods.

“The ground is still saturated from the heavy rain from last year, and any rain that falls over the next two months could lead to flash flooding and more household insurance claims.

“This should be a wake up call for the government and insurers to reopen dialogue on the Statement of Principles, which is due to expire on 1 July.”

He added: “A trade off between infrastructure investment in flood defences and affordable home insurance premiums for customers is essential to ensure people can continue to live in areas that may be affected by floods in the future.

“This will also help the government’s agenda to build houses as a lot of the recent building of new properties is in areas that may be affected by future flooding.”