• Flood Re is a joint industry/Government sponsored reinsurance fund owned by the UK insurance industry.
• The scheme launches on the 4th April 2016 and has been designed to ensure that flood insurance is both available and affordable for the 350,000 properties most at risk of flooding in the UK.
• The scheme is open to all UK household insurers and provides them with an opportunity to purchase reinsurance for the flood element of an insurance policy.
• With insurers being able to pass the flood risk onto Flood Re they can in theory widen their appetite for such properties thereby increasing the choice of insurer for customers.
• The scheme will be funded by the UK household insurance industry through the payment of a levy by insurers
• Insurers are free to decide whether or not to sign up and use Flood Re (although the levy must be paid anyway) and from which date.
• Insurance Brokers will be able to trade with these insurers
• The introduction of Flood Re means that, once it is live we will be able to approach more insurers who will no longer decline a risk purely based on the flood exposure as long as the risk is eligible for the scheme.
How will insurers cover this levy?
• All UK household insurers are compelled to pay the levy.
• As with other levies they will inevitably be passing this charge onto customers
• Now is the most important time ever to get a broker to look for a good deal for you.
Is this good news?
• In short, for Weir Insurance customers, yes.
• Our customers will continue to access our fantastic claims service and 365 day advice.
• Properties previously affected by flood will no longer have to go uninsured or ace inhibitive prices for severely compromised cover.