As Flood RE celebrates its first anniversary today, research shows that the scheme is proving a success among insurers and insureds alike, according to research carried out by Flood RE.
Property owners who previously struggled to obtain affordable cover now have a choice of insurance providers, showing light at the end of the tunnel for those affected in flood prone areas.
Our previous article "Flood RE: One Year On..." looked at Mark Hoban's (Chair of Flood RE) perspective on the development of the scheme, where he addressed factors contributing to its potential future success. With these in mind, based on its first year in operation and results announced today, I can only see this scheme becoming more integrated within the market as time goes on and more parties become involved, leading to a successful future.
These 60 insurers represent 90% of the UK home insurance market and means that the UK’s flood reinsurance scheme – set up to enable people living in areas at risk of flooding to access affordable cover – is working as intended. Marking its first anniversary, research commissioned by Flood Re showed by December 2016, 95% of policyholders who had made prior claims could get quotes from two or more insurers while 84% could obtain five or more quotes. Currently, 58% of those households that had previously made flood claims have access to ten or more quotes.