Flood Re is proposing to offer lower premiums on policies where property flood resilience measures have been installed. The premiums currently charged by Flood Re to insurers vary by the Council Tax Band of the insured property. Whilst the existing Regulations do not specifically prevent the introduction of different pricing levels within Council Tax Bands, there is no specific allowance for, or expectation of, alternative premiums to be charged for properties within those Bands to, for example, reflect PFR measures that householders have installed.
Flood Re has committed to promote the development of an evidence base and engage with the insurance industry to develop mechanisms to recognise the adoption of PFR by householders.
By offering discounted premiums Flood Re aims to incentivise the take up of PFR measures by householders. Through lower inward insurance premiums, Flood Re will recognise those who have taken active steps to reduce the impact and costs of future flooding events on their property. This will help to support a market for resilience products and help to change attitudes and behaviours.