- AXA UK to provide flood-prone customers with access to property flood resilience measures under the Build Back Better scheme
- Two-thirds of the UK residential property insurance market now support the Build Back Better initiative
AXA UK announced today it has signed-up to the Flood Re’s Build Back Better scheme. This means it will be able to offer relevant customers access to reimbursement costs of up to £10,000, over and above work to repair damage and loss caused by a flood.
The Build Back Better scheme has now gained the support of more than 60% of the UK’s residential property insurance market. AXA UK joins insurers Ageas, Aviva, Covea, Hiscox, NFU Mutual, Lloyds Banking Group (Bank of Scotland, Halifax, and Lloyds Bank home insurance products), LV= General Insurance and RSA on the ground-breaking scheme.
Tara Foley, CEO, AXA Retail UK, confirmed the insurer’s participation during a special roundtable event in Parliament focused on the role of flood prevention and increasing resilience within the levelling up agenda. Attendees included Alex Sobel MP, Shadow Minister for Nature Recovery and the Domestic Environment and Emma Hardy MP, Member of the Treasury Select Committee.
As we adapt to climate change and extreme weather events become more frequent in the UK, it is vital that insurers support customers in protecting their homes against flood risks. Damage caused by flooding can have a devastating impact on the lives of those affected and more needs to be done to protect vulnerable communities and help those who have been impacted return to their normal lives more quickly.
Build Back Better is an important step towards strengthening flood resilience and I’m very pleased that AXA UK has become a participating insurer in this revolutionary scheme to reduce the impact of future flooding and help customers in at-risk areas. By placing resilience at the heart of housing and building policy, the insurance industry can collectively reduce the UK’s vulnerability to extreme weather events and help communities reap the benefits of a safer, better-planned built environment.
I am delighted that another major UK insurer has come on board. Investing in property level flood resilience measures is proven to lessen the impact of future flooding and enables householders to return to their homes sooner. This will significantly reduce the stress and trauma associated with flooding. It also part of the UK’s response to changing climate.
Build Back Better is less than a year old so it is really encouraging to see the support of the vast majority of the UK’s property insurance market so quickly. I believe we are well on the way to establishing Build Back Better as a standard offering within UK home insurance policies.
The Flood Re scheme will end in 2039, and the Build Back Better scheme will play a key role – along with other measures and government investment in flood defenses – to ensure the UK will be able to manage the effects of climate change and increased flooding.
The Build Back Better scheme was launched by Flood Re, the joint initiative between the UK insurance industry and the UK Government to promote the availability and affordability of flood insurance, last April. The funds, which insurers can claim back from Flood Re, can be used to pay for the installation of flood resilience measures such as raised electrical sockets, self-closing air bricks, non-return valves, along with flood resistant doors and the replacement of wooden floors with waterproof tiling and grout. The scheme also covers the cost of surveys to understand the flood risk and potential mitigation of individual properties.
About Flood Re
Flood Re exists to promote the affordability and availability of flood insurance for homes across the UK. Flood Re’s operation promotes a competitive insurance market that customers can take advantage of. Flood Re does not set consumer prices – this remains a decision for insurers to make.
Insurers can place the flood risk element of domestic property insurance with Flood Re at a premium linked to property Council Tax bands. Flood Re sits in the background, with the purchase of the policy and the process of making a claim being unchanged.
The scheme launched on 4 April 2016 as an independent body that is privately owned and operated, whilst also being publicly accountable. Insurers use Flood Re to benefit their customers.
Around half a million homes have now benefited from the Flood Re scheme since its launch in 2016, with four out of five homes with previous flood claims experiencing a price reduction of more than 50%. 98% of homes at risk of flooding are now able to access quotes from more than five of the insurance brands backed by the Scheme.
Flood Re has a rating of A ‘stable’ outlook by Standard and Poor’s, one of the world’s leading independent credit ratings agencies. Flood Re is regulated by the Prudential Regulation Authority and the Financial Conduct Authority (firm reference number: 706046).