A WELSH minister said he supported the idea of a subsidy to help insure households in areas of flood risk.
It would be funded by a levy on all buildings and contents insurance premiums, and administered by the insurance industry.
The proposal is a preferred option of an ongoing UK Government.
Alun Davies AM, Minister for Natural Resources and Food, said: "I support the general principle of a subsidy, helping to keep premiums available and affordable, but discussions will continue on how it will operate and over what period.
"In time, premiums will become more reflective of the true risk and homeowners in flood risk areas should be aware of potential flooding and how to become more resilient to that risk. My officials will continue to work with their counterparts in England, Scotland and Northern Ireland to bring forward a solution that allows people to insure their homes and not face steep increases in premiums."