Brussels, 29/01/2015 (Agence Europe) - On Thursday 29 January, the European Commission approved a British reinsurance scheme aimed at ensuring the availability of domestic insurance at affordable prices for flood-related damage. The scheme will set up a pool to provide reinsurance for the 'flood' risk element for households deemed at high risk of flooding. Despite partial funding by an industry-wide levy, which may confer an economic advantage to the pool over its competitors, the Commission concluded that the scheme is compatible with EU state aid rules, because such insurance cover might not otherwise be sufficiently available on the private market, and the scheme remedies the market failure without unduly distorting competition. (EL)