Housing associations have four weeks to sign up to a pilot scheme that will cut their insurance premiums by up to 30%.
The project could use a model called a captive, which allows a group of associations to set up their own insurance scheme. They share profits or losses made by the group.

The project is also researching self-insurance, in which an individual association regularly puts money aside to cover potential claims.

The ideas were mooted last February when associations' insurance premiums rocketed by 25%. Insurers blamed the price hikes on the 11 September 2001 attacks in the USA and historical under-pricing.

Associations have until 15 May to sign up to the pilot, which was designed by insurance firm IMRG and is spearheaded by Malcolm Wilson, finance director of Wandle Housing Association.

So far, 10 are already seriously interested. Five more are likely to come on board.

The scheme needs a total premium of £30m-40m to be viable so about 10 associations need to join.

The pilot will establish whether the premiums are high enough to make it work as well as the best model to use.

The scheme will be launched next March if it is found to be viable.

Wilson said: "We need to establish what people's premium levels are. All the information will be together in three months and will determine whether it's worth doing the scheme on an individual basis and on a captive basis."

Source

Housing Today