Multi-occupancy buildings insurance after Grenfell

In the latest episode of the Insurance Post Podcast, titled ‘Multi-occupancy buildings insurance after Grenfell’, Laura Hughes, general insurance policy manager at the Association of British Insurers, said through the risk-sharing scheme the industry is playing its part in making tower blocks safer and cheaper to insure.Hughes added: “One of the real problems we have seen with some of these buildings is the fact that the capacity, or exposure, insurers are willing to take on is relatively limited and, therefore, we have seen layering of different insurers providing cover for a certain level of that building.Associated costs“We have seen [that] some of the associated costs of that layering type scheme has seen significant cost for the insured, and, ultimately, the leaseholders who then see those cost premiums passed on. What the scheme is doing is looking to increase the capacity so there is no longer that need for the layering of capacity for each building.“I am not going to lie to you – it is a significant market intervention, and it has been extremely hard work. Our members have been consistently throughout the past year working hard to get this scheme up to speed.“We have been working with McGill & Partners that are leading the development of this specialty scheme. It is important to know that it is only going to be a short-term, time-limited scheme."Ultimately, we are looking to create a sticking plaster while remediation work takes place.“It has been complex. There has been a lot of competition law we have needed to take into account, but we are really pleased with the way it has been developing.”Hughes is joined on the podcast by Matthew Connell, director of policy and public affairs at the Chartered Insurance Institute, who reflects on whether HM Treasury and the Financial Conduct Authority could shake up the rules for how insurance brokers get paid as a result of concerns about the cost of buildings insurance to residential leaseholders and other property owners of multi-occupancy buildings. Hosted on Acast. See acast.com/privacy for more information.