Many people in Hull are still recovering from the emotional and financial costs of 2007 floods.
An ITV investigation has found that thousands of homes have been built on floodplains against expert advice, and may now be uninsurable.
A change in the way compensation is paid to accident victims means that those under 22 are set to be hit with higher insurance premiums.
Billions of pounds were wiped off the value of leading insurance companies today after the City watchdog launched a new investigation.
The Financial Conduct Authority is looking at policies like endowments and pensions dating from the 1970s to the turn of the century that locked savers in with high exit fees, amid concerns customers may have been charged too much.
ITV News Economics Editor Richard Edgar reports.
Britain's largest insurer says it expects to feel "minimal" impact on profits as a result of an investigation into 30 million policies.
Aviva, which has seen its shares close almost 3% lower after the announcement of the probe, says it has already capped charges at 1% or less for pre-2001 group personal pension policies and has no material exit charges applying to its legacy book.
It said the Financial Conduct Authority's review could apply to around £200 million of its long-standing life insurance policies.
However, the firm added its "treatment of customers has been fair and appropriate, and therefore any impact on the group's profits should be minimal, if at all".
Ongoing exposure of poor practice in the financial services industry has "shattered" the public's trust, an expert has said.
Ros Altmann, an independent pensions expert and savers' campaigner, said: "Too often, insurers rely on customer inertia and take advantage of people's trust.
"Insurance is meant to offer both protection and future growth at a reasonable price, yet all too often its product pricing relies on customer inertia to recoup costs from captive customers."
Shares in a number of insurance firms have recovered slightly since tumbling this morning in the wake of the Financial Conduct Authority's announcement of an investigation into 30 million policies.
Performance since the start of the day for a handful of companies is as follows:
- Resolution was down 7.10%
- Standard Life was down 1.55%
- Aviva was down 2.75%
- Legal & General was down 3.67%
- Prudential was down 3.03%
Insurer Legal & General called on the Financial Conduct Authority to bring forward details of its investigation into 30 million polices sold between the 1970s and 2000 after a "disorderly market" reaction to the announcement.
– Legal & General
Legal & General does not outsource customer administration: our customers benefit from the continuity of a single product and service provider.
Our operating practices ensure we provide good value to our customers, and we have operated a programme of ongoing product reviews for more than 10 years.
The City watchdog the Financial Conduct Authority has told ITV News' Business Editor Joel Hills about their inquiry into 30 million policies sold by insurance companies between the 1970s and 2000:
FCA tells me "highly unlikely" exit fees will be wiped out. It's assessing the "fairness" of the 30m policies today not if were missold.
Shares in insurance companies have tumbled this morning in the wake of the Financial Conduct Authority planning an investigation into 30 million policies sold between the 1970s and 2000.
- Resolution was down 11.1%
- Standard Life down by 2.6%
- Aviva was down 4.3%
- Legal & General down by 5%
- Prudential down by 3.5%
The inquiry comes amid concerns that loyal policyholders are not being given the same priority as new customers.
The Financial Conduct Authority (FCA) is planning an investigation into 30 million policies sold by insurance companies between the 1970s and 2000.
The inquiry comes amid concern that loyal policyholders are not being given the same priority as new customers and are facing high fees for substandard service. It will include pensions, endowments, investment bonds and life insurance.
The FCA review, which is to begin this summer, is concerned about insurers using returns from so-called "zombie" funds - which are closed to new customers - to pay bills from other parts of their businesses.
A large number of policies also include exit fees that can halve a policy's value if a customer attempts to switch to a cheaper provider.
Clive Adamson, the director of supervision at the FCA, told The Daily Telegraph: "As firms cut prices and create new products, there is a danger that customers with older contracts are forgotten. We want to ensure they get a fair deal."
It is "far too early to say" if and by how much insurance premiums will go up after thousands homes and businesses were damaged by the south coast floods, according to the Association of British Insurers.
Malcolm Tarling told Daybreak that insurers would "do the maths" after flood victims had been allowed to safely move back into their homes.
– Otto Thoresen, ABI's Director General
The flood waters may have mostly receded, but for many the distress of being flooded remains raw.
Insurers and loss adjusters are playing a crucial role in the recovery process. A badly flooded property can take months to become habitable again, so insurers continue working around the clock to ensure that the drying out process is completed as quickly and as safely as possible.
While of course this was a serious and significant bad weather event the current flood damage costs remain well below the severe floods of 2007 when insurers paid out £3 billion to customers.