Evidence from: Oxford water lecture series 23rd Oct 2013 Matt Cullen (ABI) explained flood re, Prof Edmund Penning Rowsell delved into the economics of risk rating and subsidy. The annual property premium in the UK is circa £9bn. Most perils are predictable, but flood losses are very volatile e.g £3bn in 2007 on commercial and domestic flooding combined. Reinsurance would seem to be in the region of £13bn. Around 500,000 homes in the UK are at very high risk of flooding, a high proportion of these are council tax band A and B and have a high probability of not insuring either structure or contents. This causes political embarrassment when large numbers of people find out what it is not to be resilient. Flood Re would offer a subsidised insurance scheme for such domestic risks. It is estimated that home-owners would contribute £140m annually, the property insurance market would top this up with an additional £180m by annual levy. Flood Re would be able to buy reinsurance. The 1:200 year