Flood Re to reduce 2019 premium

Flood Re is reducing the premiums it charges to insurers from the start of 2019.

In consultation with insurers, Flood Re has commenced a process of reviewing premiums which will conclude by the end of September. Flood Re is considering a range of different reductions in the level of premiums for buildings and contents policies in order to optimise the benefits of the scheme.

Once the changes are confirmed, insurers will implement the necessary changes to come into operation from Jan. 1, 2019. This announcement comes after Flood Re decided not to pass on the annual increase to premium thresholds in April 2018.

Flood Re has been created by the UK government to enable householders to find affordable insurance if an eligible property is at risk of flooding and help tenants to find affordable contents insurance if they live in an eligible property.

“After two years of operations, we are pleased that the scheme’s objective, of ensuring the availability of affordable home insurance for people in flood-prone parts of the UK, continues to be met,” said Flood Re CEO Andy Bord.

“Our careful management of the scheme means that we have built up good reserves and so are well-placed to respond to any future flooding events.

“Our strong position means that we are in a position to reduce the premiums that we charge insurers in 2019. We are therefore consulting with the industry about the right level of reduction, as well as how the cuts should be allocated across buildings and contents policies. In the UK’s competitive home insurance market, we anticipate these premium reductions will be passed on to consumers,” Bord added.

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