Aviva has said that the government must ‘step up to the plate’ and invest in improved flood defences, or face the threat that insurers might stop providing cover for some households.
Britain’s second- largest insurer said it is already holding talks with the authorities to explain the need for further public money to be spent on safeguarding the UK against floods. Unlike many countries, UK insurers have agreed to provide cover for all communities where flood defences exist or are planned within the next five years. But the deal expires at the end of 2012.
Aviva pointed out that the ‘private sector is delivering their end’ of the bargain so the onus will be on the government to find some cash, even though it is on an austerity drive. ‘If the government is prepared to invest, the industry could and should do another deal,’ said Aviva’s UK boss Mark Hodges.
‘If they don’t step up to the plate there are going to be some very difficult conversations.’
Hundreds of thousands of homeowners and businesses in high risk areas will worry that they won’t get insurance if a deal can’t be reached, but Aviva says government ‘is not blind’ to their concerns.