The UK Government’s flood reinsurance scheme has started to accept policies from insurers after three years of preparatory work.

“We have been working tirelessly to ensure we’re ready so consumers can start benefitting from greater choice and more competition in the insurance market,” CEO Brendan McCafferty said. “This should make flood cover more affordable and accessible to those in high-flood-risk areas over time.”

Flood Re will be in place for 25 years and is expected to help about 350,000 households vulnerable to flooding, according to its website.

The pool is a collaboration between the insurance industry and the Government to provide affordable cover for homes deemed high-risk.

A levy of about £10.50 ($19.50) is imposed on all UK household premiums to subsidise the scheme, which secured £2.1 billion ($3.9 billion) in cover, including from Munich Re and Swiss Re. It is one of the five largest natural peril reinsurance deals globally, and the second-biggest in Europe.

The Government and the Association of British Insurers signed a memorandum of understanding to develop the pool in July 2013.