The current flood agreement between the Government and the Association of British Insurers comes to an end at the end of June 2013. Negotiations to continue providing affordable premiums to those most vulnerable to flooding are seemingly at a grinding halt.
Under the present agreement, insurers are committed to offering existing consumers universal flood insurance at affordable rates, providing that the Government invests in flood defenses. However, government spending on flood defenses is reported to have reduced. The Guardian reported last July that 294 flood defense projects have not received funding.
Talks between DEFRA and the ABI over a new deal have been ongoing for months. As many as 200,000 households could find it difficult to source reasonable premiums on flood insurance if no agreement is reached.