Flood Re, the UK’s government-backed reinsurance scheme, has opened a new online facility for managing general agents (MGAs) that will allow them to cede policies directly to Flood Re on behalf of their insurer.
Previously, MGAs had to collate and send ceding data through an insurer in order to apply for a Flood Re policy.
The new facility will allow an MGA to contact Flood Re directly and send policies in the same way insurers do, providing all parties with visibility on the risks taken on by both the insurer and the MGA.
Given that MGAs mainly operate in the niche and broker markets, Flood Re believes that the facility will help increase the availability of its policies through brokers and for households with a specialist risk.
“We have already made great progress in improving the availability and affordability of home insurance in flood prone areas through the direct-to-insurer market,” said Andy Bord, Chief Executive of Flood Re.
“We are hopeful that this move to give MGAs access to the same system as insurers will make it easier for consumers to get a better deal,” he explained.
“We’ve worked with the broker industry to find a solution to opening up the scheme and expect this new facility will be welcomed by the industry and consumers.”
Andy Thornley, Head of Corporate Affairs at the British Insurance Brokers’ Association (BIBA), also commented on the new facility: “Brokers play an important part in arranging cover for distressed risks and having access to Flood Re-backed products is extremely important to BIBA members up and down the country.”
“Expanding the available options to brokers via MGAs is a welcome move and we are pleased this announcement coincides with the BIBA conference where delegates can visit the Flood Re stand to find out more,” Thornley added.