Flood Re has appointed Capita as its managing agent as the partnership between government and the industry prepares to get up and running for the summer.
Capita will be responsible for working with Flood Re and the insurance industry to build and run the not-for-profit reinsurance fund’s business operations, systems and controls before regulatory approval.
As part of the five-year contract the firm will then manage the day to day aspects of the business including the ceding process, inwards and outwards reinsurance claims settlement and accounting processes.
Vic Gysin, joint chief operating officer of Capita said: “The confidence that has been shown by Flood Re in our highly skilled team is testament to the expertise and reputation we have built in the insurance industry and reflects the commitment we have made to this market.”
Brendan McCafferty, Flood Re’s chief executive, said: “We are now focused on working hard with Capita to get ready to share the operational details of Flood Re with the industry.”
The Flood Re scheme was established to ensure homes in the UK at the highest risk of flooding can receive affordable cover and will be owned and managed by the insurance industry.
An agreement to establish the fund was reached in 2013 and the Associated of British Insurers said it is working to get the scheme up and running by summer.