Source · Select Committees · Environmental Audit Committee
Recommendation 39
39
Accepted in Part
Consult on strengthening insurance in flood resilience and pilot Flood Performance Certificates by 2025.
Recommendation
By the end of 2025, the Government should consult with insurers and stakeholders on strengthening the role of insurance in flood resilience. This should include promoting and simplifying access to the Build Back Better scheme. The Government should support the development and piloting of Flood Performance Certificates (FPCs) as a voluntary tool to improve awareness of property flood risk and resilience. FPCs should be introduced initially on a voluntary basis, with Government support. FPCs should be piloted in high-risk areas with a clear, trusted methodology for assessing resilience, in partnership with local authorities, insurers and estate agents, and they should be free or subsidised for low-income households. Following evaluation of the pilot, the Government should consider how to expand 67 FPCs more widely. Objectives could include minimising the risk that homeowners are penalised for factors beyond their control and reducing the likelihood that properties become difficult to sell or insure due to flood risk. (Recommendation, Paragraph 129) 68
Government Response Summary
The government supports the piloting of Flood Performance Certificates by Flood Re and has encouraged the insurance industry to promote the Build Back Better scheme through roundtables and the FloodReady report. Industry bodies have committed to actions including developing FPC prototypes and raising customer understanding of flood resilience.
Government Response
Accepted in Part
HM Government
Accepted in Part
The government recognises the important role that insurance can play in supporting flood resilience. The government has been encouraging the insurance industry to promote greater uptake of its Build Back Better scheme. Minister Hardy convened two roundtable discussions with insurers, where the role of the scheme in improving flood resilience and supporting long-term affordability was a key focus. The recently published FloodReady report highlights the role insurers must play in increasing the resilience of people and properties to flooding. Three of the report’s recommendations directly support the mainstreaming of Build Back Better or equivalent flood-resilient reinstatement, including through flood performance certificates. The Association of British Insurers, Flood Re and UK Finance have committed to actions to support delivery, including: • raising customer understanding of the benefits of property flood resilience early in the claims journey • establishing a cross-sector forum to share best practice • promoting the Flood Re Academy more widely • completing the development of a flood performance certificate prototype and scoring methodology for piloting with insurers and lenders and involving conveyancers and surveyors The government supports the piloting of flood performance certificates by Flood Re as a voluntary tool to help improve awareness of property-level flood risk and resilience. These pilots will be important in assessing the feasibility, effectiveness, and potential impact of flood performance certificates, including how they are received by homeowners, insurers, lenders and the wider property market.