That the following five principles underpin the design of a system of premium discounts:
• premiums should rise with the level of flood risk;
• those whose homes do not face a flood risk should not pay a flood premium;
• there should be no cross subsidisation of premiums between policyholders;
• there should be some limitations on discounts to high-value homes; and
• the discount mechanism should be simple for policyholders and automated for insurers.
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Recommendation 8
RecCODE
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