Insurers are set to pay up to £500 million - £17 million every day - to customers who have suffered flood and storm damage during the wettest June on record, according to latest estimates from the Association of British Insurers (ABI). 

Commenting on the figures, Nick Starling, the ABI’s Director of General Insurance, said: 

“The widespread floods of this summer highlight how vital flood insurance is. During June alone insurers helped 68,000 customers hit by the floods and storms. Millions of people rely on the protection of flood insurance, which is why we continue in constructive discussions with the Government exploring how flood insurance can continue to remain as widely available and affordable as possible.” .

For the past twelve years insurers have had a Statement of Principles agreement in place which has ensured that high flood risk customers have had ongoing access to insurance cover. However, the ABI and the Government have yet to reach agreement on its replacement when it ends in June next year.

The news is likely to put further pressure on the Government to be seen to be taking active steps to address the growing number of long-term flood related issues. Funding for insurers to guarantee ongoing availability of insurance cover for householders and businesses alike in flood-prone areas, coupled with demands for increased expenditure on flood risk management and defence schemes in the wake of budget cuts, could end up becoming a key issue at the next election.