Part 4

Flood insurance

The Flood Reinsurance Scheme

Scheme administration
67
1
The Secretary of State may by regulations make provision in connection with the administration of the FR Scheme.
2
Regulations under subsection (1) may require the FR Scheme administrator to have regard to the following in discharging its functions—
a
the need to ensure economy, efficiency and effectiveness in the discharge of those functions,
b
the need to act in the public interest,
c
the need to ensure propriety and regularity in the operation of the FR Scheme, and
d
the need to manage, over the period of operation of the FR Scheme, the transition to risk-reflective pricing of flood insurance for household premises.
3
Regulations under subsection (1) may require the FR Scheme administrator to produce and publish, in accordance with the regulations, a plan for achieving the transition mentioned in subsection (2)(d).
4
Regulations under subsection (1) may require the FR Scheme administrator to provide the following information to relevant insurers who have issued insurance policies that are reinsured under the FR Scheme, so that those insurers may supply the information to holders of those policies—
a
information about how to find out about the levels of flood risk to which an area in which household premises are situated is subject and how any flood risk may be managed;
b
information about the FR Scheme, including information about the effect of section 64(2)(b) (transition to risk-reflective pricing of flood insurance for household premises).
5
Regulations under subsection (1) may—
a
limit, to any extent, the power of the FR Scheme administrator to borrow money or otherwise incur debt;
b
make provision about the reserves of the FR Scheme, including limitations on draw downs and transfers;
c
require the FR Scheme administrator to take steps to limit the overall net losses that may be incurred by the FR Scheme in any year to an amount specified in or determined in accordance with the regulations;
d
provide for the form and contents of the FR Scheme’s accounts;
e
provide for a copy of the audited FR Scheme’s accounts and a copy of the auditor’s report on those accounts to be laid before Parliament;
f
provide for the Comptroller and Auditor General to examine—
i
the economy, efficiency and effectiveness with which the FR Scheme administrator has used resources in discharging its functions, and
ii
the propriety and regularity in the operation of the FR Scheme,
and for a report on any such examination to be laid before Parliament;
g
provide that for the purposes of an examination under paragraph (f)—
i
the Comptroller and Auditor General is to have a right of access at all reasonable times to any of the documents relating to the FR Scheme, and
ii
a person who holds or has control of any of those documents is to give the Comptroller and Auditor General any assistance, information or explanation which the Comptroller and Auditor General requires in relation to any of those documents.
6
Regulations under subsection (1) may—
a
require the FR Scheme administrator to designate an individual of a description specified in the regulations as the responsible officer of the FR Scheme;
b
provide for the responsible officer to have such responsibilities in respect of—
i
the FR Scheme’s finances,
ii
the FR Scheme’s accounts,
iii
accountability to Parliament for the economy, efficiency and effectiveness with which the FR Scheme uses resources in discharging its functions,
iv
accountability to Parliament for propriety and regularity in the operation of the FR Scheme, and
v
examinations and reports under subsection (5)(f),
as are specified in the regulations.
7
Regulations under subsection (1) may make provision about the disclosure of information required for the purposes of the FR Scheme and may, in particular, require relevant insurers to supply to the FR Scheme administrator such information as it may request in relation to insurance policies issued by them.
8
Regulations under subsection (1) may provide for the supply by the FR Scheme administrator of information held by it in connection with the FR Scheme to—
a
the Environment Agency,
b
the Scottish Environment Protection Agency,
c
the Natural Resources Body for Wales,
d
the Department of Agriculture and Rural Development in Northern Ireland, or
e
such other body as may be specified in the regulations.
9
Regulations under subsection (1) may provide for the supply by the FR Scheme administrator of information held by it in connection with the FR Scheme to the Secretary of State for purposes relating to government accounting.
10
Subsections (2) to (9) are not exhaustive of what may be done under subsection (1).
11
In this section—
- “flood insurance” has the meaning given in section 64;
- “the FR Scheme’s accounts” means the accounts for a financial year of the FR Scheme prepared by the FR Scheme administrator in respect of the FR Scheme.