Concerns that regulation and flood measures will be rushed
The Queen’s speech included a new Financial Services Bill to give consumers more protection and promise of better flood defences.
The Association of British Insurers (ABI) expressed concern that measures were being rushed.
Maggie Craig, the ABI's acting Director General, said: "We understand the need to legislate on the agreements made at the G20 and EU. However, this Bill should not be a catch-all for the wrong type of regulation. We should be wary of the principle that the state should set an individual's pay package, not the market.
"The changes to the FSA's powers on consumer redress are of profound importance, and we are alarmed this is being rushed through without proper consultation with industry. This is too important not to get right. We are also worried over moves to court-based collective redress. Pushing the UK toward a US litigation culture would create costs for consumers and businesses that far outweigh the benefits.
"We support today's announcement to improve consumer knowledge of financial services. Insurers have long worked to develop the public's financial education."
F
looding support
On the proposed Flood and Water Management Bill, Craig said: "Managing the UK's rising flood threat better is crucial for the five million properties at risk of flooding. It is also essential to ensure that flood insurance remains widely available.
“We welcome this Bill which should represent an overhaul in flood management, which we have long campaigned for. Its progress into law should be a priority."
33 days left
Alastair Grier, managing director of Home and Life, at Direct Line said: "We remain cautious, as there are only 33 legislative days left in the Lords before Parliament dissolves for election.
“Never has the severity of flooding and storms posed such a serious threat to homes and livelihoods, and it is up to the insurance industry to play its vital role in protecting against these extraordinary weather changes. “Communities across the UK depend upon our willingness to secure their futures and we are committed to fulfilling this service, but we need Government support to achieve this.
No watering down
“The Floods and Water Management Bill must pass into legislation all 92 recommendations by the Pitt Review without sacrificing or watering down these vital measures. Cross party support will be essential for this.
“Direct Line will play its part but Parliament must play its part too. Given the time frame, we are concerned that the good intentions of this Bill will not be achieved either in time or in full."
