Part 4

Flood insurance

The Flood Reinsurance Scheme

The Flood Reinsurance Scheme
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1
For the purposes of this Part, the Flood Reinsurance Scheme is a scheme which—
a
is established for the purpose mentioned in subsection (2), and
b
is designated for the purposes of this Part by regulations made by the Secretary of State.
2
The purpose referred to in subsection (1)(a) is the purpose of providing reinsurance to relevant insurers in respect of such risks arising from a flood as are identified by the scheme, in such a way as to—
a
promote the availability and affordability of flood insurance for household premises while minimising the costs of doing so, and
b
manage, over the period of operation of the scheme, the transition to risk-reflective pricing of flood insurance for household premises.
3
The Secretary of State may by regulations make provision as to levels of reinsurance premiums payable by relevant insurers under the FR Scheme, and may make different provision for different purposes.
4
Regulations under subsection (3) may, in particular, make different provision for different purposes by reference to the value of the household premises insured.
5
In this section “flood insurance” means insurance in respect of risks arising from a flood.
6
In this Part, the Flood Reinsurance Scheme is called “the FR Scheme”.