The EA are not a bunch of numpties, as the Government like to make out (well Sandbag Pickles anyway).
As mentioned in another thread, Gideon has taken risks with his austerity program and it has just bitten him on the bum. I understand the policy leading to lack of dredging goes back 20 years or so, so there are no innocent parties here except maybe….just maybe the EA.
Insurance is not a right. Insurance companies are commercial operations and they assess risks based on the probability of an event occurring and recent claims history. They then reinsure the losses across the non retail market to reduce their exposure, keep costs down and generate a profit.
If the reinsurance market looks at a raft of massive claims they are likely to increase their rates. The insurance company will pass this on to the customer. The customer can then decide whether or not to accept their terms.
I suspect the impact (on home insurance) of these floods will be spread across the entire country to mitigate the cost to those affected by the flooding though, in don’t be surprised if people living in flood plains pay through the nose in future, or even have insurance withheld. If the risk reduces over years, companies will probably begin to offer terms once again though it may be expensive. It will probably depend on how effective flood prevention methods are at the time. If they keep failing, then insurers will not willingly expose themselves to unacceptable risks and sadly, householders will have to live with the financial consequences of living next to a river, on low lying land etc.
(I have nothing to do with the EA or home insurance btw)
