Plans to overhaul the way insurance is provided for flood-prone homes are “unfair and unworkable”, the boss of Lloyd’s of London insurer Hiscox warned today.
The company said the Flood Re proposals, which have been drawn up by the Government and insurance industry, will end up discriminating against homeowners across the country if they are enforced next year, as expected.
“At the moment rented properties, leasehold properties, homes built after 2009 and H/I band council tax homes are being excluded,” boss Bronek Masojada said. “Floods are one of the most traumatic claims we see, a flood doesn’t discriminate and neither should the Government.”
Hiscox said that winter flooding across the UK was likely to cost it about £16 million in claims.
However, an otherwise quiet year for catastrophe claims, meant the group posted pre-tax profits of £244.5 million in 2013, compared with £217.5 million a year earlier. It also meant that the business could return £178 million to shareholders in dividends.
Masojada added: “We are excited about the opportunities we see in many retail markets where we have room to grow profitably. In our big-ticket areas, discipline and opportunism will guide us.”
