Housing Secretary Michael Gove (pictured) has asked the Financial Conduct Authority (FCA) and the Competition and Markets Authority (CMA) to review the insurance market for leaseholders in high-rise blocks.
Gove has said he is “extremely concerned” that leaseholders in high-rise blocks face insurance premiums which they may be unable to afford.
Within his letter to the FCA and CMA, Gove said he would like to see the departments shed light on the underlying causes of year-on-year price increases and assess the causes of the marketed restriction in coverage available for multiple-occupancy buildings.
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Gove said: “I am also concerned to hear 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.
“The market lacks transparency and there is not currently useful data to explain the rationale behind the increasing premiums charged by insurers and the conditions associated with the cover.
“The role and remuneration of brokers, managing agents and freeholders is also unclear.
“Many policyholders do not view the market as effectively delivering accessibly priced, widely available insurance. I share that view, and do not consider this an acceptable situation.”