‘ Defra are inviting views on the Secondary Legislation for the Flood Reinsurance (Flood Re) Scheme which has been launched today. The legislation for the Flood Re Scheme has been made through the Water Act 2014, which received Royal Assent on 14 May 2014.
We are now working on the implementation of the Flood Re Scheme and are intending to introduce regulations to enable the insurance industry to implement Flood Re next year. The proposed new regulations provide the legal framework for the implementation and operation of the Flood Reinsurance Scheme. They set out how the Scheme will be administered and funded and how the Scheme and the Administrator will be designated. The draft regulations include:
a. The Flood Reinsurance Scheme Funding and Administration Regulations 2015
b. The Flood Reinsurance Scheme Administrator Designation Regulations 2015
c. The Flood Reinsurance Scheme Designation Regulation 2015
Ongoing monitoring of the insurance market is necessary to ensure that our policy aims (to ensure flood insurance for high risk households is available and affordable over a transitional period of 25 years) are being achieved through Flood Re.
During the passage of the Water Act 2014, concern was raised about the impact on the market for small and medium-sized enterprises, certain leasehold properties and the private rented sector once the 2008 Statement of Principles expires, as they will not be eligible for Flood Re. Ministers have therefore made a commitment to monitor the market for these sectors too. We welcome your views and comments on the proposals. If you wish to obtain a copy of this consultation please contact firstname.lastname@example.org . The documents may be found on Defra’s website: