Flood Re marks one year of making flood insurance more affordable in Scotland
Flood Re marked its first anniversary at a reception in the Scottish Parliament last night.
Graeme Dey, the MSP for Angus South, opened proceedings by stressing the value of Flood Re’s commitment to the Scottish people and saying that he looked forward to working with the organisation over the coming years.
Additionally, he detailed the work that the Enviroment, Climate Change and Land Reform Committee will be doing on flooding over the next 18 months.
Also speaking was Maurice Golden, the MSP for West Scotland, who reflected on Flood Re’s first anniversary on 4th April 2017.
Roseanna Cunningham MSP, Cabinet Secretary for Environment, Climate Change and Land Reform, also delivered a speech, outlining how the Scottish Government is funding flood defence and resilience work.
She also detailed what the Scottish Government is doing to raise awareness of the need for flood cover, as well as of Flood Re itself.
Andy Bord, CEO of Flood Re, closed out the reception by giving an update on the scheme’s performance since launch.
Andy Bord, Chief Executive of Flood Re, commented after the reception: “It’s important to us that people in Scotland understand how Flood Re can help them access a greater choice of flood insurance, which is why we’ve been working with the Scottish Government, SEPA, the Scottish Flood Forum and local authorities to raise awareness of the scheme. We’re excited to be here in Edinburgh as part of that continuing collaboration.
“We’re very pleased with the successes we’ve had in our first year in operation, but we realise that there’s still work to be done. People should speak to their current insurer to see if it has signed up to Flood Re and be prepared to shop around to ensure they are able to get the best possible deal.”
Roseanna Cunningham MSP, Cabinet Secretary for the Environment, Climate Change and Land Reform, said: “Raising awareness of Flood Re’s work on its first anniversary is important because it is making flood risk insurance more affordable to people across the country.
“While insurance does not reduce the risk of flooding it does provide some relief and comfort to householders living in areas more susceptible to flooding.
“The Scottish Government is committed to working with partners to reduce flood risk across Scotland and has committed £420 million over the next 10 years to protect homes in many of our most flood-prone areas.
“We are also providing £140,000 a year to the Scottish Flood Forum which works directly with communities and individuals at risk of flooding to raise awareness and help them take action to protect their property.
“I would urge people to prepare for flooding by checking out the services Flood Re has to offer and also to sign up to SEPA’s Floodline service to get the latest flood information direct to their mobile phone.”
Graeme Dey, the MSP for Angus South, commented: “People buy insurance hoping that they’ll never need to use it.
“Being hit by flooding can result in a double whammy – not only are people left having to deal with the immediate costs and effects, but it can result in extremely large home insurance premiums.
“Flood Re has an important role to play in ensuring that there is a choice of affordable home insurance products for consumers living in areas at risk of being flooded.
“I was therefore pleased to be able to host Flood Re in Parliament to give MSPs the opportunity to learn more about the organisation’s work.”
Recent research revealed that Flood Re had succeeded in bringing more choice to flood affected communities in its first year in operation.
The statistics revealed that, since the introduction of Flood Re, four out of five householders with previous flood claims saw a reduction in the price of available quotes of more than 50%.
They also show that, before the introduction of Flood Re, only 9% of householders who had made prior flood claims could get quotes from two or more insurers, with none being able to get quotes from five or more.
Now, 95% of those households that had previously made flood claims have access to two or more quotes and 84% can get quotes from five or more insurance providers.
Flood Re is a world first scheme that was set up in April 2016 to increase the availability of affordable home insurance premiums and excess levels for householders in flood risk areas. It sits behind the policies that insurers issue which enables them to compete for business in areas of high flood risk.
This means more insurance products and choice for the people of Scotland. Since launch, 60 insurance providers have signed up to the scheme, representing 90% of the home insurance market. Across Scotland, the scheme has changed the market by enabling consumers in flood-prone parts of the country to have more choice.