Government consults on changes to Flood Re scheme

The government has launched a consultation on proposed changes to the Flood Re scheme. The consultation closes on 26th April 2021.

In a statement, the Department for Environment, Rood and Rural Affairs, said: “The first two of these proposals seek to encourage householders and insurers to install property flood resilience by offering financial incentives to do so.

“PFR is a vital part of the toolkit for managing flood risk. It refers to measures that can be used in a property to reduce the risk of flooding and levels of damage. PFR is a key component of Flood Re’s plan for the transition towards a risk reflective home insurance market for those at risk of flooding by 2039.”

It added: “The next two proposals are technical measures intended to improve the efficiency of the Flood Re Scheme. We want to see the Scheme working as efficiently as possible and demonstrating good value for money wherever possible.

“The next proposal explores whether there is more that the Flood Re Scheme could do to accelerate the uptake of PFR, including whether to enable Flood Re to spend any surplus it accrues (above and beyond what it requires to operate and meet its regulatory requirements) on further transitional activities.

“The last part of the consultation explores whether Flood Re premiums should be reduced.”

Image courtesy: Gamma Location Intelligence

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