The insurance industry's Statement of Principles, which ensured the vast majority of property risks would include flood cover, was due to expire in June 2013. It has now been replaced with a memorandum of understanding between the Government and the industry.
Last year was the second wettest on record in the UK, and the insurance industry was faced with some 486,000 claims from homeowners, businesses and motorists, according to the Association of British Insurers. An increased amount of claims impacts on profitability and with the Flood Re solution being worked on, it is now up to insurers to decide on pricing and what risks they want to accept and reject.
This paper focuses on how insurers can help control the growing risk of flood by making use of sophisticated flood model data.