Flood Re backs 142,000 policies
The number of policies backed by Flood Re, the UK scheme to promote flood insurance has increased to 142,000 from 53,000 within a year.
“18 months after its creation, it is clear that Flood Re has changed the home insurance market,” said Andy Bord, chief Executive of Flood Re.
“142,000 at risk households have accessed more affordable home insurance and we are proud that the Scheme is helping so many people whose lives have been devastated by flooding.
“There has been a continued improvement in the both the availability and affordability of home insurance for those with prior flood claims, as well as those who have not yet been flooded but are in ‘at risk’ areas,” Bord added.
Before the introduction of Flood Re, only 9 percent of householders who had made prior flood claims could get quotes from two or more insurers, with 0 percent being able to get quotes from five or more, according to Flood Re. By October 2017, availability had improved so that 100 percent could get quotes from two or more insurers, while 93 percent of these households could get quotes from five or more. Four out of five of householders with a prior flood claim saw price reductions of more than 50 percent.
Flood Re was launched on April 4, 2016, to promote the affordability and availability of flood insurance for homeowners across the UK. Insurers can place the flood risk element of domestic property insurance with Flood Re at a premium linked to property Council Tax bands. Flood Re’s operation promotes a competitive insurance market while leaving pricing decisions to insurers.
“Over the coming months we will be looking at further ways of raising awareness of the benefits of Flood Re in flood-prone parts of the country and opening up channels to new customers, for example through brokers,” Bord said.
“My message to those in flood-prone areas is – the benefits are clear so don’t hold back; people should speak to their current insurer and be prepared to shop around to obtain the best policy.”
