Move marks completion of industry negotiations with government over flood scheme
Environment secretary Elizabeth Truss has formally laid the secondary legislation for Flood Re before parliament.
The secondary legislation defines how the affordable flood insurance scheme will operate.
The formal laying of the legislation before parliament marks the end of negotiations between the government and the insurance industry about how Flood Re will be run.
MPs will debate the legislation after the general election on 7 May. If they approve it, it will pass into law.
Flood Re chief executive Brendan McCafferty said: “Laying the secondary legislation is a highly significant milestone on the path to the establishment of Flood Re.
“It marks the completion of negotiations with government, allowing the legislative process to be completed after the election, and is the result of many months of very detailed work between Flood Re, the industry and the government. The regulations provide the certainty necessary to allow us to move into the build and test phases of Flood Re’s development.”
He added: “Flood Re is the first scheme of its kind in the world and is a highly complex undertaking. The laying of the regulations is an important step towards enabling affordable insurance to be available for those households and families most at risk of flooding.”
AXA commercial lines and personal intermediary chief executive Amanda Blanc said: “This is good news for householders, particularly those impacted by the threat of flooding, who will, in future, have much greater choice and security than is available under the Statement of Principles.
“Insurers now have the certainty that the final legislative hurdle has been successfully negotiated and can finalise the necessary work so that extensive testing can begin. Customers may never appreciate all the nuances of Flood Re; nevertheless this unique initiative will have the capacity to improve peoples’ lives immeasurably.”