Flood Re, the not-for-profit flood insurance fund in the UK, has published a tender for the services of a Retrocession Broker.
Flood Re was set up to ensure that flood insurance in the UK remains available and affordable for those homeowners considered to be at high risk of flooding. The framework for Flood Re is set out in the Water Act 2014. The launch date for Flood Re is expected to be June 2015.
The tender invites bidders to apply for an initial 4-year contract, which is extendable to up to seven years.
According to ABI, the broker will provide Flood Re’s advice on retrocession and other protection together with catastrophe modelling services. In addition the Broker will procure and place outwards reinsurance and other protection on behalf of Flood Re.
Tom WoolgroveTom Woolgrove, interim Flood Re CEO, said:
“The Flood Re programme and ABI are delighted that tender documents for the appointment of the Broker have been published. Accessing global reinsurance, to transfer risk and manage volatility, is a key part of the Flood Re business model, and by using a broker’s expertise, we hope to balance the cost effective placement of reinsurance with accessing innovative solutions.”
“Both tenders demonstrate our good progress, and are further major milestones in implementing Flood Re.”