Catastrophe plans to the fore

It remains to be seen how the insurance industry's response to the floods in Cumbria will compare with its efforts almost exactly one year ago. While journalists may berate politicians for describing these events as unprecedented, in this instance its use is not about political blame-avoidance: you have to go back to 1844 to find events that parallel those unfolding in Cumbria. The relentless rainstorm was caused by a prolonged flow of humid air that originated over the sub-tropical waters of the Atlantic.

The tide inevitably washes up at the industry's door but, while parallels will be drawn, this is not the same as last year. Despite the unprecedented experiences in Cumbria, the events in Yorkshire and the Midlands in 2008 and the catastrophic flooding in June and July 2007 have etched on insurers' and loss adjusters' minds the need to anticipate such events far faster.

In 2007, while residents and business owners ejected sludge from their properties and towns, the industry set about improving surge and catastrophe plans designed to mobilise response to future situations. Even as the first headlines appeared about Cumbria, there was a sense within the industry that it was responding - and from a better position. Indeed, until 2007 there had not really been catastrophe plans to deal with events of this magnitude in the UK.

The industry has been on a sharp learning curve. A week before the Cumbrian deluge, loss adjusters in several firms were ordered not to drink at the weekend and many insurers and brokers implemented co-ordinated, outbound calling strategies to check on commercial and personal policyholders.

The media hype on such disasters makes the moment of truth for those affected with their insurers very public. Hopefully, the pre-emptive measures of the industry to assist Cumbrian victims will vindicate the effort poured into the plans designed to deal with these freak phenomena and leave a high watermark in the public's estimation

Sara Greenland, associate director (personal insurances), Sterling