McGill launches Swiss Re-led fire safety reinsurance facility
Re/insurance broker McGill and Partners has established a new fire safety reinsurance facility with support from reinsurer Swiss Re and the Association of British Insurers (ABI).
Led by Swiss Re, the facility aims to improve the availability of insurance for UK buildings with combustible cladding and other fire safety issues.
The first step will be for the participating insurers and some of the leading firms providing insurance cover for commercial and residential buildings – Allianz, Aviva, Axa, RSA and Zurich – to enter higher-risk buildings they currently insure, and which are awaiting remediation works, into the facility at the point of their annual renewal.
Through a reinsurance panel led by Swiss Re, the facility will enable insurers to expand the capacity they have for writing insurance for affected buildings and take on new business.
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.
Steve McGill CBE, founder and CEO, McGill and Partners said: “Insuring 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.
Mervyn Skeet, ABI director of general insurance said: “Supporting leaseholders and making insurance more widely available for higher-risk buildings with fire safety issues has been one of the ABI’s top priorities. I’m 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.
Aidan Kerr, UK&I lead at Swiss Re Public Sector Solutions, said: “Swiss 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."
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