Wednesday, October 27, 2010

ABI Comments on flood investment Plans

The Association of British Insurers issued a Press Release on the 21st October 'Spending Review – ABI comments on flood investment plans' 20th October 2010

Commenting on the announcement, in today’s Spending Review, on flood defence investment,
Nick Starling, the ABI’s Director of General Insurance and Health said:
“The Government is right to recognise the importance of continued investment in flood defences. But we are disappointed that this will not be maintained at current levels, given the scale of the problem and the wider economic benefits provided by flood defences to our communities and businesses.

“We urgently need a long-term plan to tackle the rising flood risk this country faces over the next 25 years, especially as the Statement of Principles on Flood Insurance comes to an end in 2013. “In the last spending review, the previous Government committed to £2.15 billion for three years 2008 - 2011. Today, the Government committed £2 billion over four years 2011- 2015”.

Further Information
The UK insurance industry is the third largest in the world and the largest in Europe. It is a vital part of the UK economy, managing investments amounting to 24% of the UK’s total net worth and contributing the fourth highest corporation tax of any sector. Employing over 275,000 people in the UK alone, the insurance industry is also one of this country’s major exporters, with a fifth of its net premium income coming from overseas business. Insurance helps individuals and businesses protect themselves against the everyday risks they face, enabling people to own homes, travel overseas, provide for a financially secure future and run businesses. Insurance underpins a healthy and prosperous society, enabling businesses and individuals to thrive, safe in the knowledge that problems can be handled and risks carefully managed. Every day, our members pay out £155 million in benefits to pensioners and long - term savers as well as £58 million in general insurance claims.