Defra ‘People in the highest flood risk areas will be better protected against spiralling insurance costs as Flood Re comes one step closer to implementation today. After ongoing negotiations with the Association of British Insurers (ABI) and Flood Re, an agreement has been reached on a number of matters regarding how Flood Re will operate. This will enable legislation to be laid in Parliament next year and – once approved by the financial regulators – enable Flood Re to operate as a reinsurer. This comes at the same time as the government publishes its response to the public consultation carried out in the summer. As part of the package of measures, the criteria has been widened to include further properties that will be eligible for Flood Re. This received wide support in the public consultation and from the insurance industry, which has agreed to fund this without passing costs on to other consumers.’ To read more go to:
January 18, 2015