So we were right: Flood Re, the scheme for affordable flood insurance, won’t now come in effect next month. According to reports, it has been delayed until April 2016 – which means that many householders in areas at high risk of flooding could face rocketing insurance premiums until the agreement comes into force.
And it seems it’s all because ‘computer says no’! Apparently “the complexity of building and testing the technology behind the scheme, with up to 400 insurers, will hold up the launch for months.” (www.thisismoney.co.uk)
Flood Re was first muted in 2013 when the existing Statement of Principles ran out. This was an agreement between the government and insurers and ensured that everyone had access to affordable flood insurance. Flood Re was meant to replace it but its path has been incredibly tortuous.
As we moved close to the date, it was looking increasingly unlikely that the deadline of July 2015 would be met. There were issues and challenges every step of the way….and, as we wrote here many, many times, it just didn’t seem possible that these issues would be resolved in time.
So now we face another significant delay. We will, as always, keep you updated.