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Flood Re submits plan to reshape the flood insurance market

Flood Re submits plan to reshape the flood insurance market | Insurance Business

Flood Re submits plan to reshape the flood insurance market

The flood reinsurance scheme, Flood Re has delivered evidence to the inquiry into flooding being conducted by the Commons Environment, Farming and Rural Affairs Select Committee (EFRA). This written evidence details an eight-point plan to assist in a move towards an affordable risk reflect market for flood insurance.

The inquiry from the EFRA was initially launched in March and focuses on the Government’s approach to managing the risk of inland flooding in London. This expands on the inquiry concluded in 2019 which examined how the country was adapting to the impacts of coastal flooding and climate change. Flood Re’s eight-point plan aims to advance its long-term ‘Transition Plan’, which is looking to:

  1. Reduce the risk of flooding – Through investment in flood risk management and flood defence building and maintenance, long-term clarity must be provided, with funding settlements lasting from 10-20 years. The Government must also work to ensure that flood risk is not increased by inappropriate housing development.
  2. Reduce the cost of flooding – Flood Re’s plan calls for a significant and timely increase in the installation of property resilience (PFR) measures. Government should support this uptake of PFR and look to pilot Flood Performance Certificates to help educate householders on the benefits of PFR.
  3. Achieve an efficient market – Flood Re’s evidence urges the Government to support the recommendations outlined in its Quinquennial Review, especially those pertaining to ‘Build Back Better’ and discounted premiums for householders with flood resilience measures installed.

The chief executive of Flood Re, Andy Bord said that communities across the UK are still grappling with the long-term financial and emotional consequences of flooding. Flood Re fully supports the Government’s inquiry into flooding and noted that it hopes all with an interest in managing flood risk will work together towards a common purpose.

“We are proud of our success so far and these proposals will help to ensure home insurance is both available and affordable for those most at risk of flooding,” Bord said. “We look forward to working with the committee.”