Experience suggests we can’t trust insurers

Do we trust insurance companies? Will they ensure that people hit by flooding will get prompt emergency assistance and full repayment as quickly as possible, as they promised ministers?

They are keen to be seen to be doing all they can to help. Maurice Tulloch, Aviva’s UK insurance chief, said after the Downing Street meeting: “The priority for insurers is to look after those whose lives are being turned upside down.” Andy Watson, Ageas chief, spouted a similar message. “We are doing all we can to help customers get back on their feet.” And here’s Paul Evans, AXA’s UK boss: “Supporting customers through the trauma of flooding is what we are here to do.”

Hooray! But is this a sea-change, or have insurers simply learnt a public relations lesson from the 2007 floods when they came in for severe criticism for their poor response? Labour branded the meeting a “vacuous PR stunt”. Shadow Cabinet Office minister Michael Dugher said: “Three hapless junior ministers booking a meeting room does not constitute a serious response.”

Consumer groups were also cynical. Citizens Advice chief Gillian Guy said: “Insurers must not drag their feet as they did after the 2007 storms. Then people were still seeking help more than a year after the floods.”

The Labour leader Ed Miliband echoed that call, saying: “12 months to complete an insurance claim is too long. The Government must agree a new industry standard with insurers that reduces the time people have to wait.”

But nothing so positive came out of yesterday’s meeting: just an admission from insurers that they couldn’t rule out a future price hike. If their PR charm exercise can’t extend to a commitment to keep premiums down, it seems likely that we’ll all be hit by rising cover costs.

However, the test of insurers’ commitment to customers will emerge when floods subside and people want to get their homes back. Will there be the usual delays or laborious claims processes?