Covea, Hiscox & RSA commit to Flood Re’s Build Back Better scheme
Andy Bord, Flood Re’s CEO, has announced that leading UK insurers, Covea, Hiscox and RSA, have joined the Build Back Better scheme.
Launched by Flood Re back in April this year, the Build Back Better scheme is a joint initiative between the UK insurance industry and the UK Government to promote the availability and affordability of flood insurance.
With the addition of the three new members, the initiative has now gained the support of around 60% of the UK’s residential property insurance market.
The scheme promotes the availability and affordability of flood insurance and enables participating insurers to offer customers access to reimbursement costs of up to £10,000, over and above work to repair damage and loss caused by a flood.
Flood Re explains that the funds, which insurers can claim back, can be used to pay for the installation of flood resilience measures. This includes raised electrical sockets, self-closing air bricks, non-return valves, flood-resistant doors and the replacement of wooden floors with waterproof tiling and grout.
Flood Re adds that the scheme also covers the cost of surveys to understand the flood risk and potential mitigation of individual properties.
Tim Slattery, Personal Lines Underwriting Manager, Hiscox UK, commented, “Helping customers to better protect their homes from flooding is in everyone’s interest. Claims of this nature are distressing and disruptive and often lead to a great deal of waste and demand for new materials as the damage is repaired.
“This practical and innovative scheme will elevate the resilience of UK housing stock and help those who are affected by flooding return to their normal lives more quickly.”
Suzy Tiffany, Personal Lines Claims Director at RSA Insurance, added, “It’s clear that climate change is causing more frequent and severe weather events to take place, and we want to support our customers in protecting themselves against this increasing risk.
“It’s no small task, but it is important that the UK’s housing stock is futureproofed by strengthening flood resilience. The Build Back Better scheme works towards that goal, and we’re delighted to be a part of it.”
The three new insurers join the initial participating insurers, Ageas, Aviva, NFU Mutual, Lloyds
Banking Group (Bank of Scotland, Halifax, and Lloyds Bank home insurance products) and LV=
General Insurance.
From Sharm El-Sheikh, Andy Bord, CEO of Flood Re, commented, “UK insurers are leading the way in helping householders adapt to climate change, since COP26 insurers have turned their ambitions into action by joining the Build Back Better scheme.
Today I am delighted to welcome Covea, Hiscox and RSA to this important initiative. To have already secured the commitment of around 60% of the UK’s property insurance market with 8 of the UK’s major insurers, stands testimony to the commitment of the insurance industry to do what it can in the wake of climate change and really make a difference to customer outcomes.
“We are confident that more insurers will come on board in the next six months and that Build Back Better will soon be a standard offering within UK home insurance policies. The recent extreme weather across the UK this year has served to underline the impact that changing weather patterns are having in the UK, with one in four UK properties now predicted to be at risk of flooding from climate change. Increasing the resilience of the UK’s housing stock and reducing the trauma experienced by those being flooded has never been more prescient.
“Inflation and the Cost-of-Living Crisis, which are stretching both households and businesses, are also increasing claims costs in the wake of flood. Building back better will ensure that residential properties will not only be more resilient but will minimise future reinstatement and alternative accommodation costs in the event of further flood. This is good news for both the insurance market and customers, as we endeavour to ensure flood cover remains both accessible and affordable for customers.
With the Flood Re scheme ending in 2039, it is essential the UK is able to manage the effects of climate change and increased flooding. The insurance industry cannot do this alone, their efforts must be combined with continued government investment in flood defences and a planning system that builds with flood risk in mind.”
Source: Reinsurance News, https://www.reinsurancene.ws/cop27-covea-hiscox-rsa-commit-to-flood-res-build-back-better-scheme/