A new watchdog should be appointed to review the insurance industry in the wake of the devastating floods in the Lewes area in October last year.

Norman Baker, defending the Lewes seat for the Lib Dems, said the new Government should appoint a new regulator and draw up a code of practice for the industry.

He said the proposed watchdog should assess the response of insurance companies, the time it took to settle claims and investigate when renewals are refused or excess charges applied.

Some insurance companies have been reluctant to renew policies while others have tried to impose excesses or drop flood cover from policies.

Other companies have offered renewals without fuss or any alteration in terms.

Mr Baker said: "We need a regulator to study of how the industry has responded and establish a code of good practice for it to follow.

"For people, dealing with their insurance companies has been like playing roulette."

Tory candidate Simon Sinnatt said there was already an insurance industry regulator and ombudsman and the proposal was "bizarre".

He said it would create more "red tape and bureaucracy" and blamed Labour ministers for not responding to the disaster.

He said: "They have given us tea and sympathy but absolutely no action at all.

"What people are interested in is not another regulator but actually getting their money and getting their money quickly."

Labour candidate Paul Richards said: "I don't think we need more bureaucrats to deal with it, what we need is political leadership, which is why we need a Labour MP."

May 25, 2001