Source · Select Committees · Environmental Audit Committee
Recommendation 38
38
Deferred
Begin work on Flood Re successor to ensure continued, affordable flood insurance beyond 2039.
Recommendation
The Government should begin work with the insurance and mortgage sectors to ensure the continued availability and affordability of flood insurance beyond 2039, when the current Flood Re scheme is due to end. This should include options for a successor scheme (“Flood Re 2.0”) that recognises resilience measures, supports low-income households, and enables a fair transition to a more risk-reflective market. (Recommendation, Paragraph 128)
Government Response Summary
The government commits to reviewing the viability of a price-reflective insurance market beyond 2039 by the end of this Parliament. This review will explore how to ensure accessible and affordable flood insurance, including considering extending the Flood Re scheme or alternative approaches.
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.