Call for fairer flood insurance

Local MSP Nigel Don has called for insurance companies to ensure that flood risk charges across the UK are levied fairly.

Mr Don said the “revelation” that households in his North Angus & Mearns constituency, and elsewhere in Scotland, may be subsidising flood insurance in other UK regions by up to £430 a year is a “totally unacceptable anomaly”.

His comments came after the Scottish Parliament’s All Party Parliamentary Group for Insurance and Financial Services was told that while approximately one in four properties in England are at risk of flooding, the comparable figure for Scotland is one in 20.

Although flood risk management is dealt with separately in Scotland the responsibility for financial services is a reserved matter.

He said that homes at high risk of flooding are cross-subsidised by policy holders in safer areas, meaning that a disproportionate share of the insurance premiums are paid by Scottish households.

Mr Don said: “When the Scottish Government and local councils are investing substantial sums of public money to cut back the risk of flooding then surely insurance companies should reflect these investment priorities in the premiums they charge.

“The current blanket premiums charged for flood risk across the UK are unfair and it is clear that Scotland should be able to benefit from lower premiums because of the lower risk.”