State-backed reinsurance scheme Flood Re has welcomed proposals from the UK government to provide additional support for flood resilience measures which will ultimately assist in Flood Re’s transition out of the market in the future.
Flooding in Rotherham: Reuters
In July of 2019, Flood Re’s Quinquennial Review proposed a range of changes designed to help households ‘Build Back Better’ and in a more flood resilient way.
Amendments put forward by the reinsurer include enabling Flood Re to be able to offer discounted premiums to households that have implemented flood resilience measures to their property, including things like airbrick covers and non-return valves.
Additionally, the changes aim to allow the payment of insurance claims to include an extra amount to help households ‘Build Back Better.’
Andy Bord, Chief Executive Officer (CEO) of Flood Re, commented: ‘I am delighted that the Government is bringing forward our QQR proposals to consultation.
“The changes proposed should help build a more resilient housing stock by increasing the uptake of property flood resilience adaptations and address the increasing threat of flooding resulting from climate change.
“I encourage all relevant parties to join us in contributing to the Consultation and hope that the proposals get the strong support we expect for the benefit of flood-prone communities across the UK.”
With Flood Re designed to end in 2039, a focus on increasing the resilience of households in high flood-risk areas is critical to ensure that the home insurance market can continue to function effectively.
The UK government-backed reinsurance scheme called for improved flood resilience last year following record annual flood losses. In response, the government revealed plans to invest in the country’s ability to tackle the risks of flooding and coastal erosion.
Some months later, Bord urged the UK to take flood-risk more seriously and stressed the urgency of building a more flood resilient country.
