COP27: Covea, Hiscox and RSA commit to ‘Build Back Better’

Speaking at the World Climate Summit in Sharm El-Sheikh, Monday 14 November, Andy Bord, Flood Re’s CEO announced that three more leading UK insurers have joined the Build Back Better Scheme.

The scheme launched by Flood Re in April this year to reduce the impact of future flooding for households has gained the support of around 60% of the UK’s residential property insurance market, with the support of three more major insurers following commitments today from Covea, Hiscox and RSA.

Build Back Better is a joint initiative between the UK insurance industry and the UK Government to promote the availability and affordability of flood insurance, enables participating insurers to offer customers access to reimbursement costs of up to £10,000, over and above work to repair damage and loss caused by a flood. 

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.

Keeping flood insurance accessible

Investing in property level flood resilience measures lessens the impact of future flooding, enabling householders to return to their homes sooner. It also improves the resilience of the UK’s overall housing stock to the impacts of the UK’s changing climate.

The three new insurers join the initial participating insurers, Ageas, Aviva, NFU Mutual, Lloyds Banking Group (Bank of Scotland, Halifax, and Lloyds Bank home insurance products) and LV= General Insurance.

Bord commented: “UK insurers are leading the way in helping householders adapt to climate change, since COP26 insurers have turned their ambitions into action by joining the Build Back Better scheme. Today I am delighted to welcome Covea, Hiscox and RSA to this important initiative.

“To have already secured the commitment of around 60% of the UK’s property insurance market with 8 of the UK’s major insurers, stands testimony to the commitment of the insurance industry to do what it can in the wake of climate change and really make a difference to customer outcomes.

“We are confident that more insurers will come on board in the next six months and that Build Back Better will soon be a standard offering within UK home insurance policies.

“Building back better will ensure that residential properties will not only be more resilient but will minimise future reinstatement and alternative accommodation costs in the event of further flood. This is good news for both the insurance market and customers, as we endeavour to ensure flood cover remains both accessible and affordable for customers.

“With the Flood Re scheme ending in 2039, it is essential the UK is able to manage the effects of climate change and increased flooding. The insurance industry cannot do this alone, their efforts must be combined with continued government investment in flood defences and a planning system that builds with flood risk in mind.”