Flood Re slashes premiums

Flood Re, the UK’s government-backed reinsurance scheme, has cut the reinsurance premiums it charges to insurance companies as of 1 January 2019, which in turn should lower the cost of flood protection for those most at risk of flooding in the UK.

Flood Re LogoPremiums charged by Flood Re to insurers are set based on Council Tax bands, and from the start of 2019, they will be reduced by 12.5% for buildings and 33% for contents. This will mean a reduction of between £44 and £112 for combined buildings and contents policy.

The scheme has previously explored the effects of lowering reinsurance premiums with seven major primary insurance companies, which make up two-thirds of the scheme’s total distribution, and analysed over 6.9 million test records.

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