Fri 28 January, 2022
Secretary of State for Housing, Michael Gove, has written to the Financial Conduct Authority (FCA) and Competition and Markets Authority (CMA) requesting a review into the buildings insurance market for multiple-occupancy residential buildings.
In a letter to the regulator, Gove said he was “extremely concerned” to hear from leaseholders about their experience of “rapidly escalating” insurance premiums on high and medium-rise blocks, and that many insurers seem unwilling to offer new policies, forcing people to shop in a more limited market place with more restrictive terms or less coverage; in many cases, trapping people with their current provider.
In the letter Gove states that his overall goal is for there to be a more affordable marketplace for buildings insurance that offers widely available and affordable cover for those who live in flats and other multiple-occupancy buildings.
The letter requested that the FCA, in close consultation with the Competition and Markets Authority, review the sector in order to:
- shed light on the underlying causes of year-on-year price increases
- assess the causes of the marked restriction in coverage available for multiple-occupancy buildings.
The Housing Secretary also requested that the review “make practical recommendations” in pursuit of “widely available and affordable cover.”
Given the urgency of relieving the financial pressure on those affected, Gove has requested the organisations to provide initial feedback within three months, with a final report within six months.
The letter can be read here.