Between 1 April 2025 to 1 April 2026, a total of 730 risks1 secured insurance cover through the industry’s Fire Safety Reinsurance Facility (the Facility) at a total sum insured of £19.6 billion. This represents an increase from 703 risks in the previous year, reflecting the Facility’s continued growth and development.
The Facility, launched on 1 April 2024, is an industry initiative to improve capacity in the multi-occupancy buildings insurance market. By improving capacity, many leaseholders in England, Wales and Northern Ireland, and flat owners in Scotland, who live in high-risk buildings with combustible cladding and fire safety issues can now get insurance coverage where they previously could not have or at better terms.
Last year, the Facility was expanded so that participating firms could cover losses up to £75 million rather than £50 million. In its first year, 89.5% of risks within the Facility were covered within the £50 million limit, but the remaining 10.5% would have needed to secure additional insurance to be fully covered. However, since the expansion, 94% of risks were able to secure 100% of coverage through the Facility, avoiding the need to secure more cover at an additional cost.
The Facility is intended to be a time-limited intervention to provide insurance cover for buildings that need remediation. As progress is made on the government’s Remediation Acceleration Plan, and comparable programmes in Scotland, Wales and Northern Ireland, buildings should be considered safer and pose less of a fire-risk. The intention is that, once remediation work is complete, the Facility will no longer be needed as buildings can find appropriate insurance through the wider insurance market and at terms that reflect their risk. However, the industry and fire safety experts have consistently stressed that the only long-term solution to support leaseholders facing higher insurance premiums, is remediation to a standard that protects both life and property.
Changes to the ABI’s data collection
Over the past year, the ABI has changed how it collects data, accounting for differences in reporting approaches by firms as well as adjustments to policies within their terms (for example, property revaluations). In doing so, the figures stated in July 2025 have been updated and show that 703 risks were supported through the Facility in its first year, with a total sum insured of £17.5 billion.
Chris Bose, ABI Director of General Insurance Policy, said: “It’s encouraging to see that the Facility continues to work as intended by improving access to insurance for buildings with fire safety risks. We recognise the significant uncertainty, stress and financial pressures many leaseholders have been living with, and the uptake we’ve seen over the past year shows insurers have been able to offer cover where capacity would otherwise be limited. However, no insurance initiative can fix the underlying problem. The Facility is a temporary measure and remediation to a standard that protects both life and property remains the only long-term solution for leaseholders.”
Steve McGill CBE, Founder and CEO, McGill and Partners said: “The continued growth of the Facility demonstrates what can be accomplished when insurers, brokers and reinsurers work together to address a complex challenge and we remain incredibly proud of our pivotal role in its development. The fact that we were able to increase the limits last year was a clear signal of what the Facility could achieve and now we have further data to prove it. This facility has always been a great example of our industry’s ability to come together and find innovative solutions where they are needed most.”
Graeme Trudgill, Chief Executive, British Insurance Brokers’ Association, said: “The latest statistics underline the importance of the facility in delivering more affordable and sustainable premiums for buildings awaiting or undergoing remediation. Importantly, it is helping lessen the financial burden on leaseholders by providing additional insurance capacity, competition and choice to a difficult sector of the market. This positive progress is warmly welcomed by our insurance broker members.”
Aidan Kerr, Head UK & Ireland Public Sector Solutions, Swiss Re said: “As lead reinsurer, Swiss Re continues to support this initiative that has expanded capacity and enabled more buildings with fire safety issues to secure comprehensive insurance cover while remediation progresses. The Facility is an important bridge to the ultimate objective of making buildings safer and more resilient.”
