The Association of British Insurers urged the UK government to move quickly on flood remediation projects while noting it will be awhile before flooded property owners recover from an estimated $6 billion insured loss.
In a statement, Stephen Haddrill, director general of the ABI, said the association met Tuesday with Britain's government ministers to discuss the aftermath of this summer's floods.
"Since the flooding in Hull, Sheffield, Doncaster and surrounding areas 100 days ago, insurers have been dealing with over 130,000 claims for homes, businesses and motor vehicles," he said. "The cost of [insurance] claims from flooding in June and July is expected to exceed ?3 billion ($6 billion U.S.)."
Mr. Haddrill noted that the ministers offered their appreciation to the industry "in dealing with the trauma and loss caused by these floods," which have resulted in ?53 million ($108 million) paid out by the government for flood remediation and related expense. Without insurance, it was noted, the government's portion of payment would be substantially higher.
"It will, of course, take time for properties to dry out properly and only then can necessary work be carried out," he continued.
"We understand that many people will be frustrated that they can't return to their homes as soon as they would like. The insurance industry is doing everything possible to help. But we warned ministers that, in many cases, more haste could mean less speed, and the process of recovery will be a long haul lasting well into 2008 for some," said Mr. Haddrill.
The association, he said, had pressed the government to act more quickly to reduce flood risk and urged them to move up planned expenditures for projects promised for 2010-2011.
"And we stressed that ministers should act quickly once the Pitt Review on lessons learned has concluded its work," he added.
The Pitt Review is a committee of Cabinet officers led by Sir Michael Pitt, chairman of the South West Strategic Health Authority, on how to reduce and respond to future flood events. It will also examine the emergency response to the floods.
Malcom Tarling, a spokesman for ABI, said the government has made ?14 million ($29 million) available to help the uninsured recover from the flooding.
Unlike the United States, Britain does not have a national flood insurance plan, Mr. Tarling noted. Property owners must purchase coverage on the private market.
He said insurers are currently scrutinizing plans by the government to build three million new homes throughout the country. The industry is advising the government that if the building occurs in areas prone to flooding "it could affect the long-term" viability of insurance programs for those residents making them either too expensive or unavailable to homeowners, he said.
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