Government flood insurance plans “will not work”, says Hiscox

Global insurance firm Hiscox has hit out at the government’s controversial flood insurance solution, saying that the plans “will not work”.

The government’s “Flood Re” scheme, designed to provide affordable insurance for those in flood prone areas, will leave 17% of properties excluded when it comes into effect next summer, Hiscox said.

The insurance company has called for an “urgent rethink”, adding that many of the homes currently underwater in Somerset and the Thames Valley would be caught in loopholes that would deny them protection.

Hiscox chief executive Bronek Masojada said: “This week’s events show that the government’s proposed flood insurance scheme would leave many homeowners in a desperate situation.

“That cannot be right. What made sense in the heat of negotiation just won’t work in the real world.

“We absolutely support a sustainable, mutualised solution to the problem of insurance, but the government must listen to growing concern from insurers and the public.”

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