Menu

Reinsurance News

Flood Re says all homeowners policies should include flood insurance

6th November 2020 - Author: Matt Sheehan

Flood Re, the UK’s government-backed reinsurance scheme, has welcomed the key findings of a review into a 2019 flooding disaster, which recommends that all homeowners policies should include flood cover as standard.

Flooding in Doncaster, November 2019. Source: Doncaster Free Press

The Blanc review, commissioned by the UK government back in April, sought to investigate why many of the people affected by flooding in November 2019 did not have sufficient insurance coverage in place.

In particular, it looked at the worst-hit region of Doncaster, and tried to identify any possible barriers to obtaining insurance and any systemic issues in the provision of flood insurance, while also considering actions relevant for future flood events.

Now complete, the review flagged home insurance products as a potential area to focus on and said that consumers should only be sold a product if it includes flood protection by default.

Andy Bord, Chief Executive of Flood Re, voiced his support for the review, saying: “For home insurance to be effective, it is vital that all eligible at risk households are able to get flood cover that is both available and affordable.”

Bord added that Flood Re will continue to work with the ABI and BIBA to ensure there is clear communication to consumers about the different ways to purchase home insurance, including via brokers, price comparison sites and contacting insurers directly.

“Since our launch in April 2016, I am proud of what Flood Re has achieved in ensuring that affordable home insurance in flood risk areas is widely available,” Bord continued.

“96% of households with prior flood claims are now able to receive quotes from five or more insurers, and four out of five householders with previous flood claims having seen a price reduction of more than 50% since the Scheme’s introduction.”

He went on: “Flood Re believe that insurance is only one element in providing protection to at risk households. It is also important to ensure that homes in flood-prone areas are well protected through the installation of flood resilience and resistance measures.”

“This is why we have made proposals in our Quinquennial Review to allow insurers to “build back better” once properties have been flooded, as well as allowing discounted premiums to reward those householders who proactively install flood resilience measures in their home. We will work with Defra and our other key stakeholders to bring these changes into effect once the proposals have been approved by parliament.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Sirius reports $67mn Q3 loss, 115% CR

Bermuda-domiciled re/insurer Sirius International has reported a $67 million loss for the third quarter of 2020, compared to $50 million...

Close