The much-anticipated Flood Re scheme has been officially rubber stamped by both the Financial Conduct Authority and the Prudential Regulation Authority and ordained to go live as such as from its slated 4th of April launch date.
From the outset of the roll-out it’s predicted that some 350,000 households across the UK will feel the benefit of the much-talked about government-backed initiative which aims to alleviate some of the financial pressure for homeowners/insurance policyholders whose properties lie on recognised flood plains.
This comes as a timely relief to those set to take advantage of the Flood Re scheme, especially as just a month earlier the CEO, Brendan McCafferty addressed members of the All Party Parliamentary Group for Insurance and Financial Services, admitting that the earmarked initiative still had two outstanding issues to work towards rectifying before the green light could be given by the PRA.
One of the moot points according to Insurance Age was that due to the equally pressing recent issue of further increases in the Insurance Premium Tax rate, McCafferty believed that home insurance brokers had taken their eye off the Flood Re ball as it were, and subsequently worried whether or not software houses had shifted their immediate attentions to IPT rate rises.
Despite assurance by the home insurance sector, the Flood Re organisation harbours concerns that a significant number of insurance providers are looking to offer Flood Re coverage via their direct channels first and foremost, which the CEO fears might lead brokers who specialise in the area of flood risk finding themselves disadvantaged from the get-go. Still, McCafferty told Insurance Age that he’d put these hang-ups to one side for the time being and instead welcomed news from the regulators that authority had been given to push forward this April as provisionally planned.
Reiterating that the Flood Re team is collaborating with household policy providers in the run-up to the official launch, McCafferty said; “From 4th April, Flood Re will be live and ready to accept policies,” adding; “A list of insurers that will be using the scheme will be available on the Flood Re website from the evening of Friday 1 April.”