Flood Re enables insurers to offer competitive premiums and lower excesses to high flood risk homes across the UK. The support of the insurance industry is crucial to its long-term success and these 36 insurance providers now represent 85% of the overall market. The scheme's launch, on April 4th, followed months of preparation, from appointing a Board, testing IT systems and on-boarding insurers to securing GBP 2.1 billion in reinsurance cover.
Speaking following his appearance in front of the Environment, Food and Rural Affairs Select Committee on June 15th, Brendan McCafferty, Chief Executive of Flood Re, commented:
"I am pleased that the number of insurance providers available to consumers has more than doubled since Flood Re launched in early April. We are talking to more insurers and expect this number to rise from the present level of 36 over the remainder of 2016.
"Consumers can check the Flood Re website to see which insurance providers are participating and find out more about the Scheme. They should speak to their current insurer and be prepared to shop around as the market is becoming increasingly competitive. When buying a policy, people in flood-prone areas should make sure it is the best one for them and not just the cheapest."
Flood Re does not deal directly with consumers, so homeowners will continue to buy flood cover direct from their insurance providers. This increase in participating providers is good news for those living in high flood risk areas as it should mean more choice.