Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the potential implications for her policies of trends in the number of household insurance policies ceded to the Flood Re scheme; and what safeguards are in place to ensure that properties with no material flood risk are not ceded to Flood Re.

Flood Re monitors exposure trends closely, including the volume and characteristics of policies ceded to the scheme. Officials routinely meet Flood Re to discuss these topics. Minister Hardy also engaged industry leaders at an insurance roundtable last year as part of ongoing dialogue with the sector.

The Scheme’s designed to ensure policies are ceded appropriately. Flood Re undertakes audit and compliance checks on participating insurers, and insurers remain responsible for accurate risk assessment when ceding policies. Flood Re premiums for ceded policies are regulated under Part 4 of the Flood Reinsurance (Scheme Funding and Administration) Regulations 2015. Flood Re set these inward premiums at a level that aims to ensure only properties at higher flood risk, or with flooding history, are ceded to the scheme.