As part of its ongoing contribution to public consultations, the IFoA responded in August to the consultation by the Department for Environment, Food and Rural Affairs (Defra), 'Securing the future availability and affordability of home insurance in areas of flood risk'.
As flood insurance is included as standard in most building and contents policies, and mortgage lenders tend to require it, the government has sought to find ways to provide affordable cover, particularly to those whose property lies in an area of increased flood risk.
The government has proposed to move ahead with the establishment of Flood Re, the Association of British Insurers' proposed reinsurance pool for high-risk properties. The purpose of this consultation was to consider how provision could be made more widely available and what practical steps needed to be taken to introduce Flood Re.
The IFoA does not lobby for any particular position in its response but seeks to provide comment on technical issues related to implementing policy decisions. It highlights a number of areas requiring further attention for the government to successfully achieve its policy intention.
The full response and all other responses submitted by IFoA can be read at bit.ly/LCkwSr