Step forward for affordable flood insurance
Up to half a million households in high flood risk areas are one step closer to affordable flood insurance as the regulations for Flood Re come into force today.
Marking a significant milestone towards protecting people at flood risk from spiralling home insurance premiums, Floods Minister Rory Stewart has signed the regulations, following approval from Parliament.
This means the Government has now provided Flood Re with necessary powers that will enable insurers to provide affordable flood insurance to at-risk homeowners across the UK.
Floods Minister Rory Stewart said:
“Flooding can devastate people’s lives and homes and while nothing can take away the distress it can cause, having access to affordable insurance will give people peace of mind.
“Flood Re will for the first time ensure access to affordable flood insurance for people regardless of where they live.
“Today marks an important step for Flood Re as the regulations come into force and it give it the means to protect people from spiralling insurance premiums.”
Brendan McCafferty, CEO of Flood Re said:
“We are delighted that the Government has now put into effect the legislation, agreed by Parliament that gives Flood Re its statutory underpinning. Flood Re’s work with the insurance industry, regulators and others will continue. We are working towards an operational start in April 2016 and look forward to delivering on our commitment to helping insurers provide consumers with access to affordable flood insurance.”
The PRA is considering this application as part of its routine regulatory duties. Following authorisation, Flood Re will determine when it is ready to provide cover. Flood Re is working towards April 2016.