MGAM and SCOR partner in PI scheme for EWS1 assessors

A new professional indemnity insurance scheme for EWS1 (external wall fire review form) assessors is set to be delivered by MGAM through an insurance provided by SCOR UK, and reinsured by the government.

There is a significant shortage of insurance companies willing to provide PI cover to firms undertaking assessments of external wall systems in mid- and high-rise residential buildings in the UK.

Individuals living in leasehold homes have for years found themselves unable to move or remortgage due to the unavailability of obtaining the EWS1 form, which is required to prove that any external wall of a building constitutes a low fire risk.

Jason Anthony, CEO of MGAM Limited, said: “When the government approached the market for a potential solution to this issue, MGAM recognised the significant protection gap in the market and immediately responded to and later won, the tender to administer a PI scheme for EWS1 assessments. We have worked closely with DLUHC and SCOR to create a solution that, over time, will enable the private markets to provide appropriate PI cover to assessors.”

Romain Launay, CEO Specialty Insurance of SCOR P&C, added: “SCOR is delighted to be partnering with MGAM and the Department for Levelling Up Housing and Communities to deliver insurance coverage that will ensure EWS1 assessments can be carried out properly and in a timely fashion, enabling the purchase, sale or re-mortgage of homes in a challenging housing market."

Whilst the government-backed PI scheme was announced back in February, it understood that the new cover will not be available until September this year.

The current plan is for the scheme to last for five years, after which time the Department for Levelling Up, Housing and Communities said it anticipates that insurers will step back in to the market.

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