Flood insurance will continue to remain widely available and competitively priced for the vast majority of Scottish home insurance customers, under a new deal agreed today by the ABI (Association of British Insurers) and the Scottish Government.
Under the agreement, the ABI and the Scottish Government will work together on measures to manage and reduce the growing flood threat. This includes the Scottish Government developing a long-term flood strategy, and carrying out a detailed assessment of the flood risk in Scotland, from rivers, the sea and surface water.
Implementing these measures will ensure that flood insurance remains widely available and competitively priced where the flood risk is adequately managed for existing Scottish policyholders over the next five years, under an industry agreement among ABI members. After 2013 implementation of these measures should mean this agreement is no longer needed.
Justin Jacobs, the ABI's Assistant Director of Property, said:
"Today's agreement is good news for Scottish customers. The Scottish Government rightly recognises that a long-term flood strategy, backed by adequate resources and funding, is the best way to manage the growing flood threat. We look forward to continuing to work with them to ensure that these measures are implemented so that flood protection relied upon by homeowners and businesses remains widely available."
The Scottish Environment Minister, Michael Russell, said:
"This historic agreement - the first of its kind between the ABI and the Scottish Government - enables households and small businesses to plan for and minimise the financial costs of flooding."