PS23/14: Multi-occupancy building insurance: Feedback to CP23/8 and final rules

We set out rule changes to address harms identified in the multi-occupancy building insurance market.

Read PS23/14 (PDF)

Why we are changing

Our rule changes will:

Increase transparency for leaseholders. This will make it easier for them to identify and challenge poor practices, which will incentivise firms to deliver better outcomes

Require firms to make sure their:

products are consistent with the needs and interests of leaseholders and other policy stakeholders

products are priced in a way that provides fair value

remuneration practices do not lead to poor outcomes

Who this is for

regulated insurers and intermediaries

industry groups and trade bodies

unregulated firms involved with multi-occupancy buildings, such as property managing agents

freeholder owners who are landlords of multi-occupancy buildings

leaseholder representative groups and individual leaseholders

Next steps

The rules will come into force on 31 December 2023.

Background

Our report on insurance for multi-occupancy buildings and multi firm review on multi-occupancy buildings insurance – broker remuneration found significant issues in the multi-occupancy building insurance market, which are leading to poor outcomes for leaseholders.

We consulted ( CP23/8 ) on our proposed remedies to address issues with transparency, product design and remuneration practices in April 2023. This Policy Statement summarises the feedback we received, and sets out our response and final rules.

: System update No content change

: Link added link to letter added to righthand navigation

: Editorial amendment typo corrected

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