Thirty Housing associations are deciding whether to sign up to the sector's first self-insurance plan.
Wandle Housing Association is leading the group of landlords, which discussed the idea at a conference last Wednesday. The scheme is designed to avoid unexpected premium rises.

The associations have two weeks to sign up to the plan. Once 15 associations have expressed an interest, the group will hire an insurance firm to do a detailed feasibility study.

The study would look at likely premiums, how claims would be dealt with, the claims histories of the members, legal and financial issues and whether the Housing Corporation would accept the plan.

The associations could start a "captive" insurance scheme. This would allow its members to retain any profits the scheme made, keeping premiums down. However, the members would also have to share any losses. One model being considered – a "protected cell" company – would prevent associations sharing the misfortunes of different cells.

Malcolm Wilson, finance director of Wandle, said: "It's not about saving money. It's about getting certainty in premiums."

Source

Housing Today