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Scale of FCA investigation into leaseholder insurance revealed by Insurance Age Freedom of Information Act enquiry

Link(s):FOI reveals scale of FCA investigation into leaseholder insurance – Insurance Age

Context

Following contact from the then Secretary of State for Levelling Up, Housing and Communities, Michael Gove, about the pressure leaseholders face from rapidly escalating insurance premiums on blocks of flats, the FCA responded twice to the Secretary of State and continues to work on the issue. Insurance Age has asked the FCA for information on the resource that has been involved in the FCA’s work on its ongoing investigation into multi-occupancy buildings insurance.

Key points to note

  • The Freedom of Information request by Insurance Age has revealed that the FCA has held 59 meetings, 10 workshops, has engaged Deloitte as a consultant and had up to 31 employees (not full time, and not all at the same time) working on its ongoing investigation.
  • As part of the review the FCA has met with 19 brokers over 10 meetings and has met the British Insurance Brokers’ Association eight times.
  • The FCA had previously confirmed (in one of the letters to Michael Gove) that the FCA had sent data requests to17 insurers in March and to 26 intermediaries, including brokers and MGAs, in April.
  • With regard to industry engagement, it was noted that there would be two phases, in May and June, of workshops and focus groups to run in parallel with and complement the data analysis work.
  • Six workshops were held in the first phase with 58 firm representatives and four in the second phase with 39 firm representatives.
  • 15 members of staff had been involved with the data analysis project but not all were working full time on the project. A total of 31 employees, as of 1st July, have worked on all the actions but again not all have done so full time.

Next actions

None – for information and awareness.