{"id":147065,"date":"2024-03-13T15:30:41","date_gmt":"2024-03-13T15:30:41","guid":{"rendered":"https:\/\/www.reinsurancene.ws\/?p=147065"},"modified":"2024-03-13T15:13:01","modified_gmt":"2024-03-13T15:13:01","slug":"fire-safety-reinsurance-facility-established-by-mcgill-and-partners-finalised","status":"publish","type":"post","link":"https:\/\/www.reinsurancene.ws\/fire-safety-reinsurance-facility-established-by-mcgill-and-partners-finalised\/","title":{"rendered":"Fire safety reinsurance facility established by McGill and Partners finalised"},"content":{"rendered":"<p>A new initiative has been set up which aims to help improve the availability of insurance for higher-risk buildings awaiting work to fix fire safety issues.<\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-96620 alignright\" src=\"https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2022\/02\/mcgill-partners-logo.png\" alt=\"McGill Partners logo\" width=\"360\" srcset=\"https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2022\/02\/mcgill-partners-logo.png 690w, https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2022\/02\/mcgill-partners-logo-300x196.png 300w, https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2022\/02\/mcgill-partners-logo-200x130.png 200w, https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2022\/02\/mcgill-partners-logo-100x65.png 100w\" sizes=\"(max-width: 690px) 100vw, 690px\" \/>The Fire Safety Reinsurance Facility will help to increase insurance market competition to cover properties affected by combustible cladding and other fire safety issues.<\/p>\n<p>From what we understand, the Facility has been established by re\/insurance broker McGill and Partners, along with extensive support from the Association of British Insurers (ABI) and the British Insurance Brokers\u2019 Association (BIBA) which will help to ensure brokers are made aware of the facility.<\/p>\n<p>The facility has been designed to expand capacity for insurers already writing business for affected buildings, as well as encourage competition across the market so that more firms will provide cover.<\/p>\n<p>It is expected to run for three to five years while works are being carried out to make buildings more safe and resilient.<\/p><div class=\"reins-in-every-article\" id=\"reins-3970634814\"><div id=\"reins-1994118938\" style=\"margin-bottom: 10px;\"><a data-no-instant=\"1\" href=\"https:\/\/www.artemis.bm\/dashboard\/cat-bond-ils-market-statistics\/\" rel=\"noopener\" class=\"a2t-link\" target=\"_blank\" aria-label=\"Artemis catastrophe bond market charts and visualisations\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2026\/02\/new-artemis-cat-bond-charts-dashboard-728x90-banner.jpg\" alt=\"Artemis catastrophe bond market charts and visualisations\"  srcset=\"https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2026\/02\/new-artemis-cat-bond-charts-dashboard-728x90-banner.jpg 1456w, https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2026\/02\/new-artemis-cat-bond-charts-dashboard-728x90-banner-300x37.jpg 300w, https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2026\/02\/new-artemis-cat-bond-charts-dashboard-728x90-banner-1024x127.jpg 1024w, https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2026\/02\/new-artemis-cat-bond-charts-dashboard-728x90-banner-768x95.jpg 768w, https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2026\/02\/new-artemis-cat-bond-charts-dashboard-728x90-banner-200x25.jpg 200w, https:\/\/www.reinsurancene.ws\/wp-content\/uploads\/2026\/02\/new-artemis-cat-bond-charts-dashboard-728x90-banner-100x12.jpg 100w\" sizes=\"(max-width: 1456px) 100vw, 1456px\" width=\"728\" height=\"90\"   \/><\/a><\/div><\/div>\n<p>The first step will be for the participating insurers \u2013 Allianz, Aviva, Axa, RSA and Zurich \u2013 to enter higher-risk buildings they currently insure, and which are awaiting remediation works, into the facility at the point of their annual renewal.<\/p>\n<p>Moreover, both the Grenfell tragedy and Dame Judith Hackitt Review exposed major construction and fire-risk issues related to these buildings.<\/p>\n<p>Because of these alarming issues, insurers have had to consider the heightened risk of an entire building being destroyed in the event of a fire and have had to limit the amount of cover they could provide because the risk is too high for one firm to cover on its own, the ABI explained.<\/p>\n<p>Also, because of the high risks involved, brokers, freeholders and managing agents have previously had to source insurance cover from multiple firms, therefore meaning that several insurers are involved in covering one building, creating a \u2018layered\u2019 effect and adding to the cost.<\/p>\n<p>ABI noted, that these buildings are the ones which are likely to benefit the most from the new initiative.<\/p>\n<p>Moreover, through a reinsurance panel led by reinsurance giant Swiss Re, the facility will enable insurers to expand the capacity they have for writing insurance for affected buildings and take on new business.<\/p>\n<p>ABI also explained that over the course of the following 12 months, the insurers will consider which additional buildings can be entered into the facility as and when their insurance policies are due for renewal.<\/p>\n<p>It is hoped, that in the longer term, the facility will reinvigorate competition and encourage other firms to write more business for affected buildings.<\/p>\n<p>ABI stated that leaseholders should contact the person or company responsible for arranging their insurance cover, who can then discuss the facility with their broker or insurer.<\/p>\n<p>Another important factor to highlight, is that buildings insurance premiums will continue to be based on a variety of risk factors. These include: the type and age of the building, previous claims history, and other property risks such as storm\/flooding or escape of water.<\/p>\n<p>External factors such as construction costs and supply shortages will also have an impact too, ABI said.<\/p>\n<p>Steve McGill CBE, Founder &amp; CEO, McGill and Partners said: \u201cInsuring cladded, multi-occupancy buildings that pose a fire safety risk has challenged our industry for some time. However, this unique facility aims to present a competitive market solution that will address this important issue and I am incredibly proud that McGill and Partners has played such a pivotal role.<\/p>\n<p>\u201cContributing to the expansion of insurance availability for buildings with combustible cladding and other fire safety issues has been a significant priority for us. We are known for our innovative thinking and thrive on creating solutions for complex and challenging risks, and it has been possible to develop this transformative and much needed facility with the support of our reinsurer and insurer partners.\u201d<\/p>\n<p>Mervyn Skeet, ABI Director of General Insurance, commented: \u201cSupporting leaseholders and making insurance more widely available for higher-risk buildings with fire safety issues has been one of the ABI\u2019s top priorities. I\u2019m grateful to McGill and Partners and all the firms involved for their help in establishing this commercial intervention and hope it will encourage more insurers to enter the market and offer cover for these buildings.<\/p>\n<p>\u201cThe industry has been determined in its efforts to support leaseholders, but it cannot solve the issue alone. Establishing the Facility is a significant step forward, but Government intervention and swifter remediation is still the only long-term solution. We strongly encourage Government to consider how it can support the Facility to boost confidence in the market or remove Insurance Premium Tax for affected buildings, to offer more immediate relief to leaseholders.\u201d<\/p>\n<p>Tim Bailey, President of the ABI, added: \u201cThe Fire Safety Reinsurance Facility has been a priority cross-industry project to expand capacity in the market and boost competition. We&#8217;re pleased to have made the Facility a reality in order to support leaseholders and as ABI President, I&#8217;m grateful to all those involved.&#8221;<\/p>\n<p>Aidan Kerr, UK&amp;I Lead at Swiss Re Public Sector Solutions, said: \u201cSwiss Re is delighted to be acting as lead reinsurer for this facility, which is a great demonstration of how the insurance industry can work together to help support leaseholders. This facility will help to improve availability of insurance for people living in affected buildings, whilst the vital remediation work to rectify their fire safety issues is completed.&#8221;<\/p>\n<p>Graeme Trudgill, Chief Executive at the British Insurance Brokers\u2019 Association (BIBA), stated: \u201cWe are delighted with this new facility, which is the culmination of two years of constructive collaboration between BIBA, McGill and Partners, the ABI, expert real-estate brokers and Government. Launching the facility was a key BIBA commitment in our 2024 Manifesto and aims to create a more affordable insurance solution for medium and high-rise residential buildings that have fire safety issues. We hope that in the longer term this will have positive affect on leaseholders.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new initiative has been set up which aims to help improve the availability of insurance for higher-risk buildings awaiting work to fix fire safety issues. The Fire Safety Reinsurance Facility will help to increase insurance market competition to cover properties affected by combustible cladding and other fire safety issues. From what we understand, the [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":96620,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[919,255,2449,5],"class_list":["post-147065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-association-of-british-insurers","tag-british-insurers-brokers-association","tag-mcgill-and-partners","tag-reinsurance"],"acf":[],"yoast_head":"<!-- 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