UK minister signs Flood Re regulations
UK floods minister Rory Stewart has signed regulations to enact Flood Re, the UK Government's scheme to pool flood risk, following approval from Parliament.
Flood Re now has the necessary powers required to enable insurers “to provide affordable flood insurance to at-risk homeowners across the UK”, said the scheme.
Stewart explained that the scheme will allow access to affordable flood insurance for people regardless of where they live.
“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,” he said.
“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, chief executive officer of Flood Re, added: “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 and is currently working towards April 2016.
