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- Government Ministers meet with Association of British Insurers to discuss the insurance industry's response to recent flood events
Government Ministers meet with Association of British Insurers to discuss the insurance industry's response to recent flood events
| Published | 25 November 2009 |
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Local Government Minister, Rosie Winterton, and Environment Minister, Huw Irranca Davies, has met representatives from the Association of British Insurers (ABI) to discuss the insurance industry's role in the response to the recent floods in Cumbria.
The Ministers heard from the ABI that the insurance industry has put in place established processes to deal with claims quickly in large scale incidents and to support policyholders. This includes:
- giving advice through mobile support units
- helping to organise alternative accommodation for householders unable to return home
- insurance loss adjusters visiting properties to help process claims; and
- explaining exactly how long the clean up and repair process can take building on previous flood experiences.
Following the meeting Rosie Winterton, the Minister co-ordinating the Government's flood recovery programme, said:
"The meeting with the ABI was very constructive. It is clear that we are all determined to help those communities affected by the floods and will work closely together to ensure they return to normal as quickly as possible.
"The ABI explained what they and the insurance industry are doing and the extra resources their members are putting into the recovery operation. The ABI said that most people had contacted their insurers and all the main insurance companies now have mobile units in the areas giving advice to whoever visits them whether or not a householder has a policy with them.
"Visits from insurance loss adjusters are also now underway and will continue over the coming weeks. These visits are a vital first step in helping those affected assess the damage and agree a plan of action."
They also discussed the provision of alternative accommodation for householders unable to return to their homes and insurance companies are working with those affected to provide appropriate accommodation.
Rosie Winterton added:
"Clearly this is a very difficult time for people whose properties have been flooded. Experience has shown that, unfortunately, it does take time for properties to dry out before repairs can safely be made and people can move back home.
"This meeting is the first of many we will have over the coming days and weeks. It is vital that we share information so we all have a clear assessment of costs and are well-placed to work together to respond to any emerging issues."
Nick Starling, Director of General Insurance, ABI said:
"Insurers have been working round the clock to help those affected. But the really hard work begins once flood waters have receded and the damage to homes and businesses is assessed. Properties will take a long time to dry out fully and it could be many months before houses and businesses are restored to the condition they were in before the flooding.
"The good news is that insurers are on hand to react quickly and start the drying out and restoration process as soon as possible, and to help customers cope with life while their homes are drying out and being repaired by providing advice, support and alternative accommodation where needed."
Notes to editors
1. The meeting took place on Tuesday, 24 November.
2. The Government has confirmed there is a package of support for those affected by the recent flooding in Cumbria. Details are highlighted below.
3. The £1m Community Recovery Fund, announced by the Prime Minister at the weekend, and provided by Communities and Local Government, will be for Local Authorities to use as they see fit to assist local residents and businesses affected by the floods.
4. Communities and Local Government Secretary John Denham has announced that the Bellwin scheme, which provides significant financial support to local authorities in the event of an emergency, will be set at 100 per cent rather than 85 per cent.
5. The Northwest Regional Development Agency's (NWDA) has pledged up to £1m for small businesses affected by the recent flooding. The scheme will support small and medium sized enterprises with up to 250 employees that were flooded during the heavy rains.
Grants will be available to cover the following:
- Expertise to help the business plan clean up and recovery.
This could include accountancy support to produce a business plan, legal experts, engineers, flood recovery experts, architects and design consultants. Up to 100 per cent of costs can be covered. - Expertise to help businesses when they are ready to trade again.
This could include fees for marketing costs or recreating customer records. Up to 70 per cent of costs can be covered. - Interest costs for loan finance taken out as a result of the flooding. Up to 100 per cent of costs can be covered.
- Costs to train staff to use new equipment, trainer materials and the cost of venues for training. Up to 100 per cent of costs can be covered.
- VAT which cannot be recovered on items above.
Businesses affected by the recent flooding in Cumbria should contact Business Link Northwest on 0845 00 66 888.
6. The Department for Transport has confirmed that emergency funding will be made available to local authorities to support the necessary maintenance and repair work for bridges and roads.
7. Jobcentre Plus and DWP staff are providing advice on services to those citizens displaced from their homes. Victims of the flood may be eligible for help with Crisis Loans, Budgeting Loans or Community Care Grants. Anyone who needs advice should phone the contact centre on 0800 055 6688 (Textphone 0800 023 4888).
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