Association of British Insurers now supports flood protection
for all owner-occupied homes
London, UK (26 September, 2014) – Hiscox, the leading specialist insurer, has welcomed the commitment made by the insurance industry to equal access to Flood Re.
Following consultation within the sector, the Association of British Insurers (ABI) has accepted the case made by a number of insurers, including Hiscox, that all households included in the calculation of the levy that will fund Flood Re should be offered protection under the scheme.
This will mean that all owner-occupied households will be covered, should the Government accept the insurance industry’s position.
A Department for Environment, Food and Rural Affairs consultation on the proposed regulations surrounding Flood Re, has provided the opportunity for the industry to come to a common position on how Flood Re might work in practice.
Bronek Masojada, Chief Executive of Hiscox said:
“We are delighted that the insurance industry has accepted the argument made by Hiscox and other insurers, that equal access to Flood Re is the only way to guarantee long-term strength and stability.
“The Government has always acknowledged that Flood Re can only operate with the support of the sector, so we look forward to ministers accepting the ABI’s proposals.”
Due to launch in November 2015, insurers are able to place homes at high risk of flooding into Flood Re, with the certainty that any flood claim will be paid by the scheme. Flood Re will be funded by a levy on home owners’ insurance premiums. Proposed regulations currently limit the number of homes benefiting from this cover by prohibiting Council Tax band H and others from being part of the scheme, despite those properties contributing to the levy.
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Hiscox’s own response to the consultation can be viewed here.
For further information please contact:
+44 (0) 207 448 6656
Notes to editors
Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). There are three main underwriting divisions in the Group - Hiscox London Market, Hiscox Re and Hiscox Retail, which includes Hiscox UK and Europe, Hiscox Guernsey, Hiscox USA and subsidiary brand, DirectAsia. Hiscox underwrites internationally traded, bigger ticket business and reinsurance through Hiscox Re and Hiscox London Market. Through its retail businesses in the UK, Europe and the US Hiscox offers a range of specialist insurance for professionals and business customers, as well as homeowners.
For further information visit www.hiscoxgroup.com
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