Flood Re will manage a transition to a market in which home insurance prices fully reflect flood risk

Here is Flood Re’s first Transition Plan, published on schedule, in February 2016, three months after the secondary legislation passed through Parliament.

Flood Re is planned to be in place until 2039. As well as helping to enable home insurance to remain affordable in areas at risk of flooding, Flood Re also has a role to help manage a transition to home insurance prices that fully reflect flood risk. This means that people benefiting from Flood Re need to become more aware of their flood risk and, if possible, take action to reduce it.

In 2039 the Flood Re scheme will end and there will be a free market for flood risk insurance.  There will be a review at least every 5 years to assess Flood Re’s progress in managing a transition to this free market, which may consider the premium charged for each policy and the levy charged by Flood Re to UK home insurers.