Flood Re

What Flood Re does

Flood Re is a UK government-backed reinsurance scheme established in April 2016 under Part 4 of the Water Act 2014 to address market failure in the provision of affordable flood insurance for high-risk residential properties. The scheme operates as a joint initiative between HM Government and the UK insurance industry, administered by Flood Re Limited (registered in England and Wales, company number 08670444), authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FRN 706046). Household insurers cede flood risk on eligible properties to Flood Re at capped, subsidised reinsurance premiums set by Council Tax band; end-customers (households) access the scheme indirectly through their existing home insurance providers rather than transacting directly with Flood Re.

Core products revolve around the central Flood Re Scheme, augmented by Build Back Better (up to £10,000 per property for resilience measures during flood repairs), the Flood Re Academy e-learning platform (seven chapters, nearly 2,000 registered claims and loss-adjusting professionals), the Vision 2039 catastrophe bond (£140m debut issuance providing capital markets retrocession), and awareness initiatives including Flo the Flood Bus, the Rain Garden and Contain The Rain Garden installations at RHS flower shows, and Flood ReThink. Underlying technology comprises catastrophe modelling and capital modelling for risk assessment and pricing. The scheme is funded primarily by a statutory £135m annual levy on all Relevant Insurers based on UK home insurance market share, supplemented by inward reinsurance premiums, and holds approximately £3.2 billion in reinsurance capacity. The scheme operates across England, Scotland, Wales, and Northern Ireland (excluding the Isle of Man and Channel Islands), and is scheduled to wind down by 2039 when risk-reflective pricing is expected to return to the private market.

Name

Flood Re

Legal name

Flood Re Limited

Website

https://floodre.co.uk

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Short description

Flood Re is a UK government-backed reinsurance scheme that enables household insurers to cede flood risk from high-risk residential properties at capped subsidised costs, funded by a statutory insurer levy and operating until a 2039 wind-down.

Ownership category

akta.pro rank

Product category

Reinsurance

NAICS

Reinsurance Carriers (52413), Reinsurance Carriers (524130)

SIC

Fire, Marine & Casualty Insurance (6331)

akta.pro primary industry

Property Catastrophe Reinsurance (FSAOACAA)

akta.pro secondary industries

Flood Insurance (FSAJACAG), Urban Flood Resilience & Adaptation Planning (Climate, Nature-Based Solutions) (EUANAEAJ), Insurance Claims Estimation, Documentation & Managed Repair (HSAPAOAL)

Keywords

• Flood reinsurance scheme
• Household insurance
• Catastrophe bond issuance
• Property flood resilience
• Risk-reflective pricing

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Others, Infrastructure, Personnel

Revenue model

1. Insurer Levy: The scheme is funded via a levy paid by all Relevant Insurers based on their market share of the UK home insurance market. The levy is currently set in legislation at £135m per annum and is Flood Re's primary source of income.
2. Inward Reinsurance Premiums: Flood Re charges insurers reinsurance premiums for properties ceded to the scheme. Premiums vary by Council Tax band (A-H for England/Scotland/Wales) and cover type (Buildings, Contents, or Combined policies).

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels6 records

Core offering

Flood Re operates a UK-wide reinsurance scheme, established under the Water Act 2014 as a joint government and insurance industry initiative. Household insurers cede the flood risk element of home insurance policies to Flood Re at capped, subsidised rates so that high flood risk properties can obtain affordable cover. The scheme also funds property flood resilience measures through Build Back Better and is scheduled to operate until 2039 to enable an orderly transition to risk-reflective pricing.

Product overview

Flood Re is a single unified reinsurance scheme—a joint initiative between the UK Government and insurers—designed to make flood insurance affordable for high-risk properties. The core Flood Re Scheme cedes flood risk from household insurers at subsidized capped rates. Around this core, Flood Re has developed supporting programs: Build Back Better (up to £10,000 flood resilience measures during repairs), Flood Re Academy (e-learning for professionals), and the Vision 2039 catastrophe bond (capital markets financing). Additional initiatives include the Rain Garden and Contain The Rain Garden (sustainable drainage demonstrations), Flo the Flood Bus (community education), and Flood ReThink (awareness materials). The scheme operates until 2039 and is regulated by the PRA and FCA.

Differentiator

Problem solved

Functional benefit

Products and services

• Flood Re Scheme A joint UK government and insurance industry reinsurance scheme that makes flood cover more affordable as part of household insurance policies, operating as a safety net for high-risk properties by ceding flood risk from insurers at capped subsidised costs.
• Build Back Better A programme enabling householders to claim up to £10,000 for property flood resilience measures during flood repairs, including flood doors, self-closing air bricks, wall treatments, electrical socket raising, sumps, pumps, flood barriers, gates, and non-return valves.
• Flood Re Academy E-learning platform with seven chapters providing education on flood resilience for claims professionals, loss adjusters, and householders, with nearly 2,000 registered users.
• Vision 2039 Catastrophe Bond A catastrophe bond issuance providing Flood Re with retrocession reinsurance coverage against flood risks, with the debut bond securing £140 million in coverage.
• Flood Re Eligibility Tool An online tool helping homeowners check if their property qualifies for the Flood Re scheme and find participating insurers.

Quantifiable outcome

• £740 million potential annual flood loss savings from wider Property Flood Resilience adoption across 3.1 million flood-exposed homes
• +2 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered minor.

• Pen UnderwritingminorChannel Partner/ Reseller/ DistributorPen Underwriting signed up to Flood Re's Build Back Better Scheme, enabling customers to access property flood resilience measures when repairing flood damage.
• British Damage Management AssociationminorStrategic or Co-development PartnerFlood Re launched new e-learning module at BDMA's annual conference in Nottingham, expanding Flood Re Academy to seven chapters with nearly 2,000 registered users.

Scale indicators10 records

Recent moves3 records

Expansion highlights6 records

Direct peers

• Pool Re: The UK's government-backed terrorism reinsurance pool, structured as a mutual reinsurer funded by an industry levy. Pool Re is the closest analogue to Flood Re in model, regulatory framing, and statutory backing, and the Vision 2039 cat bond is explicitly modeled after Pool Re's ILS strategy.

Broad incumbents

• National Flood Insurance Program (NFIP): The US federal programme providing flood insurance to property owners in high-risk areas. NFIP is a comparable government-backed flood insurance intervention, though much larger and older, and operates directly with consumers rather than via a cession-based reinsurance scheme.
• California Earthquake Authority (CEA): A publicly managed, privately financed catastrophe insurance pool offering residential earthquake coverage in California. CEA shares Flood Re's structure as a not-for-profit, publicly mandated residential catastrophe pool, but focuses on earthquake rather than flood peril.
• Citizens Property Insurance Corporation: Florida's state-created insurer of last resort for property insurance, including coastal flood exposure. Citizens is comparable as a state-backed residual-market mechanism addressing unaffordable property insurance, though it writes primary policies rather than reinsurance.
• Swiss Re: A global reinsurance carrier active in property catastrophe and flood retrocession. Swiss Re is comparable as a counterparty in the ILS markets and a potential retrocession provider to Flood Re, though at vastly larger scale and as a for-profit commercial reinsurer.
• Munich Re: One of the world's largest reinsurers, with deep property catastrophe and flood risk expertise and significant ILS activity. Munich Re is comparable as a potential retrocession and modelling counterparty to Flood Re, though operating on a commercial global mandate.
• Hannover Re: A major global reinsurer with a sizable property catastrophe book and structured ILS capability. Hannover Re is relevant as a potential retrocession partner or comparison for capital structure and pricing decisions at Flood Re.

Others

• Fermat Capital Management: A specialist ILS investment manager and one of the lead investors in the Vision 2039 cat bond. Fermat is comparable as an enabling capital-markets participant whose continued appetite directly affects Flood Re's ability to scale cat-bond retrocession.
• Aberdeen Investments: Flood Re's sole external asset manager running an approximately £1bn credit mandate following a public procurement. Aberdeen is comparable as a strategic financial partner whose investment mandate and Solvency UK execution are integral to Flood Re's investment income.
• Environment Agency (UK): The UK public body responsible for flood risk mapping and surface-water flood statistics underpinning Flood Re's exposure data. The EA is relevant as a data and policy counterpart shaping the 3.1–6.3 million flood-exposed-property base that drives Flood Re's volumes.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/floodre
• LinkedInlinkedin.com/company/flood-re

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Flood Re