Flood Insurance and Flood Re

Craig Elliott

FCRM MMD Programme Manager

Why is flood insurance important?

Our role in insurance

The Environment Agency’s role

Making flood risk data available

Building and maintaining assets to reduce the chance of flooding

Providing flood warnings and information to property owners to help them take action to reduce their flood risk

Providing advice on property developments

Working to promote the management of residual risks (eg resilient repair)

Working with Government and encouraging better data sharing among all relevant organisations

Why was a new approach to household flood insurance needed?

Increasing flood risk

Coupled with more sophisticated flood

risk modelling

Is resulting in rising premiums and

excesses

What is Flood Re…?

Industry owned

and managed,

not for profit…

It pools the risk of flood

claims and uses a levy

to subsidise flood

insurance for the 1-2%

of households at highest

risk of flooding

Not all

properties are

eligible

It is a

transitional

measure…

The project to deliver

Flood Re is complex,

novel and mostly for the

industry to deliver. Set up funded

voluntarily by a small

number of major

insurers.

www.floodre.co.uk

Flood Re: Eligibility

Domestic properties built since January 2009

Properties with a commercial insurance policy e.g. some leaseholders.

Small Businesses (including landlords)

EXCLUSIONS

(Royal Haskoning)(Royal Haskoning)

How Flood Re works

Insurance

Company

Home

Owner

Insurers pay

premiums to Flood

Re

Flood Re reimburses

insurers for claims

made

Insurers

pay levy

to Flood

Re

Insurer pays out

when homeowner

makes a valid claim

Homeowner

purchases insurance

as usual

Working with Flood Re and insurers next steps…

(Royal Haskoning)(Royal Haskoning)

Thank you