’These adjustments are essential for ensuring the scheme’s financial resilience,’ says chief executive

Flood Re has announced changes to its scheme parameters as it looks to continue ensuring the continued availability and affordability of flood insurance. 

The changes will see the liability limit increase to £3.2bn from £1.9bn, while the loss limit will be raised from £100m to £250m.

The levy on the insurance industry will also be raised by £25m to £160m annually.

These adjustments were agreed by the Department for Environment, Food and Rural Affairs minister of state Robbie Moore and align with regulatory requirements.

”These adjustments, which are essential for ensuring the scheme’s financial resilience, are designed to balance the interests of all stakeholders, meet regulatory requirements and continue to deliver affordable home insurance to those at high risk of flooding,” Flood Re chief executive Andy Bord said.


Flood Re is the joint initiative between the UK government and insurance industry.

It said the modifications aim to ensure that the scheme remained viable, can accommodate increasing policy numbers and responds to changes in the global reinsurance markets, such as rising costs and capacity constraints.

The changes will come into effect from April 2025 and be applicable through to March 2028.

“[The] changes underscore our commitment to evolve the scheme, including the successful placement of one of the largest natural catastrophe reinsurance schemes in Europe, ensuring that flood insurance remains both affordable and accessible to those who need it most,” Bord said.