Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Acknowledged
Flood Re's future insurance mechanism to be reviewed ahead of 2039 expiry
Conclusion
Flood Re’s existence is due to end in 2039, by which time it was expected that insurance would be affordable to householders given the anticipated reduction in flood risk as a result of improvements to flood resilience. Defra told us it would keep under review what is the right insurance mechanism to have in place, bearing in mind progress with building flood defences and with creating greater resilience.
Government Response Summary
The government acknowledges the committee's observation regarding Flood Re's transition and states that Flood Re will publish its next Quinquennial Review in July 2024, which the Secretary of State will consider. The department will write to the Committee by January 2025.
Government Response
Acknowledged
HM Government
Acknowledged
6.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2025 6.2 The department will write to the Committee by January 2025. 6.3 Regulation 27 of the Flood Reinsurance (Scheme Funding and Administration) Regulations 2015 sets out that Flood Re must produce a report at least every five years which reviews the scheme, considering total levy and reinsurance premium thresholds and the need to manage transition by 2039. Flood Re intend to publish their next Quinquennial Review in July 2024 making recommendations, which the Secretary of State will consider.