Reinsurance News

UK government to review lack of flood insurance cover

15th April 2020 - Author: Matt Sheehan

The UK government has announced that it will conduct a review to identify why many of the people affected by flooding in November 2019 did not have sufficient insurance coverage in place.

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

The review will look at evidence relating to insurance cover for those affected in Doncaster following the floods last year, which was the most heavily impacted area.

It will look at possible barriers to obtaining insurance and whether there are any systemic issues in the provision of flood insurance, while also considering actions relevant for future flood events.

Additionally, the review will assess how government-backed reinsurance scheme Flood Re has affected the availability and affordability of flood coverage.

“As we have unfortunately witnessed in recent months, flooding can be devastating,” said Andy Bord, Chief Executive of Flood Re. “Insurance can provide vital peace of mind and financial protection should you need it.”

“Flood Re exists to ensure home insurance is both available and affordable for those most at risk of flooding,” he continued. “Therefore, I welcome today’s announcement of a review to identify the reasons why some people may not have had sufficient insurance cover during the November 2019 floods.”

Set for completion in September 2020, the review will be led by the former chair of the Association of British Insurers and former Chair of the Insurance Fraud Bureau, Amanda Blanc.

Blanc has commercial experience and a background in general insurance and retail, and is familiar with the role of Flood Re, a government statement said.

“We look forward to working with the reviewer Amanda Blanc and contributing to the review in any way we can,” Bord added.

Concerns around the conduct of the insurance industry are beyond the scope of the review, the government stipulated, as the Financial Conduct Authority (FCA) is already conducting a review into compliance with conduct regulations and cases raised in the media.

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