Context
UKGI has been provided with a copy of BIBA’s letter to Michael Gove, Secretary of State, Department for Levelling Up, Housing and Communities (DLUHC), dated 1st November 2022. The letter relates to the FCA’s report on insurance for multi-occupancy buildings and makes commitments to the FCA and to the DLUHC to help achieve better outcomes for leaseholders, especially those living in high rise residential buildings that require remediation work.
Key points to note
Among the commitments from BIBA, they will:
- Aim to collaborate with their specialist real estate members to create guidance promoting greater transparency for leaseholders, considering the possibility of developing a product information template.
- Promote a public statement of intent, reinforcing the principles of fair value, to only share commission with third parties who are involved in the arrangement and/or administration of insurance for multi-occupancy buildings when FCA requirements are satisfied.
- Work with the ABI, members and other relevant parties to standardise and improve the quality and granularity of information relevant to the underwriting of multi-occupancy buildings.
- Continue to work with the ABI and its members to implement the new facility for the most difficult cladded risks.
- Continue to work with government to address the shortage of adequate PI insurance, which is acting as a serious brake on the pace of remediation of cladded buildings.
Next actions
None – for information and awareness.