The FCA has announced, from the beginning of 2024, insurance companies will be forced to act in leaseholders’ best interests, treat leaseholders as customers when designing products and will be banned from recommending an insurance policy based on commission or remuneration levels. Whilst this may impact numerous property management companies, Wishtower does not earn commission on insurance policies we place.
Insurers will also be required to ensure the policies provide fair value to leaseholders as well as providing important information about their policy and its pricing, including the detail of any commission paid for leaseholders.
The FCA’s action, follows its review of the multi-occupancy buildings insurance market, which found that leasehold buildings insurance premiums had risen significantly since the Grenfell tragedy, with leaseholders facing substantially higher costs and poor value.
