McGill and Partners and the ABI have launched a Fire Safety Reinsurance Facility to help improve the availability of insurance for higher-risk residential buildings awaiting work to fix fire safety issues – providing support for leaseholders in multi-occupancy buildings where flammable materials and building safety issues have led to increased premiums.

The facility is intended to be in place for between three and five years whilst remediation takes place. It says that after that time, buildings should be safer, meaning that the facility would no longer be needed.

Axa has worked closely with the two organisations on the facility that it says could see premiums “fall by around two thirds”.

“Ultimately, the only way for premiums to be permanently lowered is for these buildings to be remediated to remove all of the combustible material. However, this facility provides a means for leaseholders to access for affordable insurance in the interim,” it stated.

Axa, Allianz, Aviva, RSA and Zurich will enter buildings into the facility from 1st April 2024. Other insurance companies interested in participating are advised to contact McGill.

The British Insurance Brokers Association has also been involved in setting up the facility and will be actively engaged in making sure brokers can use it. More advice for brokers is available on BIBA's website.

The ABI’s website features detailed information on how the facility works.

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