Flood Re secures £1.29bn in first phase of reinsurance tender process, putting it on track to accept first policy in April 2016
Flood Re, a reinsurance body aimed at limiting the cost of flood insurance for high-risk households, has secured £1.29bn in phase one of its reinsurance tender process, it was announced today.
This figure means the project is on track to secure £2.1bn by early 2016, allowing it to accept its first policy in April 2016.
“Flood Re is a complex scheme and, while we are pleased with the progress which is being made, we are not complacent,” said Brendan McCafferty, chief executive of Flood Re. “Plenty of hard work remains ahead of us. Over the next few months we need to ensure that every insurer who wishes to test with Flood Re is able to do so, that we successfully complete phase two of the reinsurance process and that we continue to work closely with the financial regulators.”
And Charles Whitmore, managing director and head of Guy Carpenter’s Property Solutions Group, whose firm acts as a reinsurance broker for the project, added: “The reinsurance market’s response to this major opportunity has been very impressive, with carriers showing a strong appetite to work with the public sector to ensure affordable flood cover will be made available to UK households.”
Last week, floods minister Rory Stewart signed off on the regulations governing the operation of Flood Re.