On 29 September 2023, the Financial Conduct Authority (FCA) confirmed new measures to give new rights and protections for residential leaseholders to improve transparency and disclosure in the residential multi-occupancy buildings insurance market which will come in force on 31 December 2023.
What does this mean?
The FCA proposed four changes in CP23/8 that it wanted to bring about in the market, which were:
1. the interests of residential leaseholders (and others in similar positions) are properly considered when firms design their products;
2. prices are fair value to residential leaseholders as well as freeholders;
3. remuneration of all parties involved in insurance distribution has a fair relationship to the benefits provided to residential leaseholders; and
4. residential leaseholders have sufficient information to challenge poor practices and unfair costs passed on to them.
What do firms need to do?
The Insurance Conduct of Business Sourcebook rules have been changed to incorporate section 6A.7 “Disclosure requirements for multi-occupancy buildings insurance”. We have reviewed the products that we distribute and can provide the following key information about the product and services which need to be provided to Leaseholders. Download our guide here
Your obligation under the FCA directive is to provide this information to Leaseholders for each applicable policy. Where a Leaseholder contacts us directly for this information we will direct them back to you. If you require any additional clarification please speak to your usual Jensten Underwriting contact.