UK minister attacks insurance industry

Britain's Environment Secretary Owen Paterson attacked the insurance industry today for causing flood victims “alarm” after 200,000 householders were warned they could lose their home cover.

As heavy rain and wind left a trail of destruction across Britain, Government and insurers clashed about how future flooding bills would be covered.

The Association of British Insurers (ABI) said talks about a “safety net” deal to ensure those in flood-risk areas can continue to afford their policies were at “crisis point”.

It also challenged a claim made by Downing Street that the Government put a new proposal to the ABI last week.

Mr Paterson refused to be drawn on whether alternative plans were on the table and criticised insurance chiefs for airing their concerns at the height of the crisis.

“I think the timing was unhelpful,” he told BBC Radio 4’s The World At One.

“There are a lot of people across the country who are going to face some very bad weather over the next few days. Many people are extremely worried and I think it is not helpful to alarm people when we are in close, detailed negotiations with them.”

Mr Paterson insisted the Government was “completely determined” to come up with an affordable and comprehensive scheme that did not burden taxpayers.

The Environment Agency said 901 properties have been flooded during the latest period of bad weather. It has issued flood warning messages to 70,684 households in the past few days.