Insurance companies are breathing a collective sigh of relief as the flooding predicted down the east coast of Britain turned out to be far less devastating than originally thought.

A combination of tidal surges and high winds put large areas of Norfolk and Suffolk at risk and evacuees having been told it was unsafe were allowed to return to their homes.

Norfolk police said that although flood defences were breached in the middle of Great Yarmouth, it "did not present a risk to persons or property".

A spokesman from the Environment Agency said: "The levels are lower than we originally predicted but only by about 30cm or so.

"There's still a risk of flooding around the coast."

Insurance companies are still licking their wounds after the widespread summer floods.

Estimates of damage incurred as a result run to around £3 billion.

Top industry figures are reported as saying they are in general pleased with measures announced by the government in the climate change bill regarding flood prevention works.

There are fears though that the government is not pressing ahead fast enough and has not put aside enough money to deal with the consequences of global warming leaving insurers to foot the bill.

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