Source · Select Committees · Environmental Audit Committee
Recommendation 37
37
Deferred
Flood insurance system is inadequate, threatening household stability and market access without reform.
Recommendation
Flood insurance is not just a financial product but a cornerstone of household and market stability. Without reform, growing risk and the eventual withdrawal of Flood Re will leave vulnerable households uninsured, businesses exposed, and communities at risk of economic decline. Uninsurable or repeatedly flooded properties risk becoming unmortgageable, depressing local housing markets and trapping families in unsellable homes. The Government must act now to secure a fair, resilient insurance system that underpins recovery, incentivises resilience, and sustains access to housing and finance in a changing climate. (Conclusion, Paragraph 127)
Government Response Summary
The government recognises the impact of climate change on flood insurance and commits to reviewing, by the end of this Parliament, whether a return to a price-reflective market from 2039 remains viable. The review will explore how to ensure a fair, resilient, and accessible insurance system, including consideration of extending the Flood Re Scheme.
Government Response
Deferred
HM Government
Deferred
This government recognises that climate change and population growth has an impact on insurance. This is why we have committed to reviewing, by the end of this Parliament, whether a return to price reflective market from 2039 remains viable. The review will consider how both the government and the industry have responded to new challenges, and whether this means that the insurance market can and will enable access to affordable flood insurance from 2039 without ongoing government intervention. The review will explore opportunities and challenges that support household resilience, promote a fair and risk-reflective insurance market, and ensure that flood insurance remains accessible and affordable for those who need it. It will include consideration of extending the Flood Re Scheme and alternative approaches if needed.