UK flood review calls on insurers to lift their game
British insurers have “generally responded well” to last year’s devastating summer flooding but could do better, according to an official report by leading bureaucrat Sir Michael Pitt.
Sir Michael’s comprehensive review of last year’s UK floods highlights a number of areas where insurers could improve policyholders’ experiences, including managing expectations better, explaining minimum service standards, addressing non-insurance via education programs and formulating a plan for each claim.
Insurers received 180,000 claims following widespread flooding in June and July last year which cost an estimated £3 billion ($6.2 billion).
A survey conducted as part of the Pitt Review reveals more than one in five homeowners have been dissatisfied with their insurance experience following the floods, due to long delays in repairing homes and difficulty in obtaining information.
The review also calls on brokers to play their part in improving the awareness of flood risk and flood mitigation.
The review supports the status quo whereby an uneasy public/private alliance ensures most homeowners have access to flood insurance. “We do not believe that there is a need to change the current system of provision of flood insurance,” the report says.
The Association of British Insurers says the report proves the UK Government has to develop a “long-term flood strategy” incorporating better public information, improved risk assessment and greater investment.
Sir Michael’s comprehensive review of last year’s UK floods highlights a number of areas where insurers could improve policyholders’ experiences, including managing expectations better, explaining minimum service standards, addressing non-insurance via education programs and formulating a plan for each claim.
Insurers received 180,000 claims following widespread flooding in June and July last year which cost an estimated £3 billion ($6.2 billion).
A survey conducted as part of the Pitt Review reveals more than one in five homeowners have been dissatisfied with their insurance experience following the floods, due to long delays in repairing homes and difficulty in obtaining information.
The review also calls on brokers to play their part in improving the awareness of flood risk and flood mitigation.
The review supports the status quo whereby an uneasy public/private alliance ensures most homeowners have access to flood insurance. “We do not believe that there is a need to change the current system of provision of flood insurance,” the report says.
The Association of British Insurers says the report proves the UK Government has to develop a “long-term flood strategy” incorporating better public information, improved risk assessment and greater investment.