UK floods: Ministers to hold insurance meeting at No 10

Severe flood warnings along the Thames - including in Staines-upon-Thames - have been downgraded

Insurance bosses are due to meet ministers at No 10 to discuss the flood response, as insurers said they had paid £14m to victims since December.

The meeting comes after David Cameron urged the industry to deal with flood claims as quickly as possible.


The prime minister also unveiled a £10m fund to help businesses recover.
Two severe flood warnings remain in place for the South West but a yellow warning for rain, previously issued for Tuesday, is no longer in force.

Weather forecasters are predicting a drier week across the UK - but warned of further heavy rain and high winds in some parts on Thursday.
'Ready and waiting'
 
Thousands of properties have been flooded in the UK since the severe weather began, with the cost to insurers expected to amount to more than £1bn.

Industry leaders have been called to Downing Street to discuss their response to the crisis and will be expected to give a briefing on steps being taken to help flood victims.

About £14m in emergency payments have been made since 23 December, according to the Association of British Insurers, with households receiving between £500 and £3,000.

And about £24m has been spent on hotels, bed and breakfasts and rented homes, it said, with an average estimated cost per affected household projected to be £16,500.

The AIB added that more than 2,000 loss adjusters were "ready and waiting" to assess the damage when floodwaters had subsided sufficiently, and 1,800 staff have been reassigned to deal with customer queries.

Insurers at the summit will also be asked to address concerns that some customers could have trouble getting flood insurance in future.

David Cameron said a £10m fund would help businesses recover

Currently, insurers must renew policies unless defences are inadequate but can push prices up to unaffordable levels, said the BBC's personal finance correspondent, Simon Gompertz.
Next year a new agreement should make the cover easier to get for many - but businesses are being left out and could find flood insurance is much harder to obtain in future, he said.
'Stepped-up effort'
 
Flooding Minister Dan Rogerson said ahead of the summit: "We all need to pull together to help those areas badly affected by the floods, so they can get back on their feet as quickly as possible.

"Dealing with the aftermath will take time and requires a stepped-up national effort.

"Insurers have a critical role to play and by working closely together we will continue to ensure that the help and support which people need is available."

The chief executives of Aviva, Direct Line Group, Axa, Lloyds Banking Group and Ageas, the claims director of RSA and underwriting director of Axa are due to attend, representing 60% of the market.
Cabinet Office ministers Oliver Letwin and Jo Johnson will chair the meeting - which is to be held monthly - and will be joined by ABI director general Otto Thoresen, Mr Rogerson and Communities Minister Brandon Lewis.

Mr Thoresen said insurers were "geared up to help in every way they can".