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Insurance industry invited to register for Flood Re

Flood Re is inviting insurers, brokers and software firms to register and begin testing their processes for the reinsurance scheme before it launches in April 2016.


14 AUGUST 2015 | BY CINTIA CHEONG

Flooded aerial views of Gloucestershire in UK © iStock
Flood Re aims to provide affordable cover to 350,000 households at high risk of flooding. © iStock

The scheme is a joint industry and UK government initiative that aims to offer 350,000 households at high risk of flooding affordable cover.

It consists of three steps. First, participants need to register and provide information including their preferred test dates, as well as completing the relevant data-sharing protocol, test plans and assessments.

Second, they will be involved in a variety of tests, both technical and scenario-based. Results will be provided in a test report, which determines if the participant is ready to use the scheme when it goes live next year. 

Having passed the first two stages, participants will need an authorised individual to sign and return legal documents.

Brendan McCafferty, chief executive of Flood Re, said: “Flood Re is one of the most significant innovations the home insurance market has ever seen. It has the potential to offer significant advantages to those industry participants who are ready for its launch in April 2016, and will help customers in areas at risk of flooding to access the competitive insurance market.

“We have been working closely with insurers, brokers, managing general agents and the Lloyd’s market for a number of months and getting the on-boarding process right will be critical to the success of the scheme.”

Amanda Blanc, CEO of AXA Commercial Lines and Personal Intermediary, added: “The process of on-boarding will be fundamental for any organisation looking to engage with Flood Re. While it sounds dull, the fact remains that Flood Re is only capable of going live when all testing, registration and authorisation has been successfully completed. 

“AXA is 100% behind Flood Re and would encourage all insurers, brokers and software houses to engage now so that this innovative scheme can be ready for successful launch in April 2016.”

Last month Flood Re began its tendering process to purchase reinsurance protection worth £2.1bn a year.