Our seventh Proper Talk took place on 1 October 2025, in front of an engaged audience of over 100 delegates, packed into the beautiful Insurance Hall in the heart of the City.
Our expert panellists for this buildings insurance session were:
ABOUT THE EVENT
Proper Talk London October 25
Jonathan Channing
Proper Talk Moderator, JC Property Consultancy Ltd
Jaclyn Mangaroo
Chief Communications Officer, The Property Institute
Leanne Philp
Head of Group Insurance, Anthem Management Ltd
Dan Lane
Associate Director, Head of RCAs, EK Reinstatement Cost Assessments
John Batty
Director of Technical Services, Bridge Insurance Brokers Ltd and Board Director of the British Insurance Brokers Association
Kevan Gough
Managing Director, Your Company Matters Ltd
Proper Talk 7 – Building Insurance in Block Management
Event Summary | 1 October 2025 | The Insurance Hall, City of London
Introduction
The seventh Proper Talk took place on 1 October 2025 at the historic Insurance Hall in London. Hosted by Jack Seton and moderated by Jonathan Channing, the event brought together more than 100 property professionals for a lively panel discussion on the challenges and opportunities in building insurance for blocks of flats. Before we got started, Jack reflected on the venue’s history as a home for the insurance profession and pointed out how fitting it was to gather in such a place to discuss the challenges of today’s block insurance market. Jack’s words set the tone for a session that was not only about regulation and risk, but also about the heritage and responsibility the sector carries in protecting people’s homes.
The discussion featured an expert panel:
- John Batty (Technical Director, Bridge Insurance Brokers)
- Kevan Gough (FCA regulation specialist, Your Company Matters Ltd)
- Jaclyn Mangaroo (Chief Communications Officer, The Property Institute)
- Leanne Philp (Head of Group Insurance, Anthem Management)
- Dan Lane (Head of Reinstatement Cost Assessments, Earl Kendrick)
Together, they explored the rapidly evolving insurance landscape, focusing on commissions, regulatory change, stakeholder communication, professional training, and practical risk management.
Key Themes & Takeaways
1. Insurance Commissions and Fair Value
The panel tackled the government’s intention under the Leasehold and Freehold Reform Act 2024 to ban commission-sharing between brokers and managing agents/freeholders.
- John Batty stressed that fair value assessments will be critical for demonstrating that remuneration is transparent and justified.
- Harpreet Singh’s audience question – noting that managing agents “ought to be able to make a healthy profit without commissions” – sparked debate about whether the industry is ready to shift to fee-only models.
- Leanne’s company had already switched from commission sharing to fees, improving transparency immeasurably, whilst proving “fair value”, tackling Gavin Scott’s question “Do managing agents understand “fair value” in practice, or is it full of grey areas?”
- Yashmin Mistry’s question concerned the ‘Leaseholder Action’ class action lawsuit regarding “secret commissions”, and if managing agents are in the firing line after the pursuit of four freeholders. The panel thought so and urged agents to seek the right professional advice, now.
Takeaway: Transparency is non-negotiable. Agents need to prepare for a world where fees replace commissions, and “fair value” must be evidenced.
2. Regulatory Oversight & Stakeholder Packs
Kevan Gough highlighted the FCA’s scrutiny of how insurance activities are conducted, warning that many agents are still operating without proper authorisation – or (mis)using the so-called company secretary “loophole”.
- Stakeholder packs, a requirement since 31 December 2023, were discussed. The consensus: brokers were providing packs to managing agents, but these weren’t always passed to leaseholders.
Takeaway: Managing agents must tighten compliance around insurance distribution and take stakeholder packs seriously – they are regulatory tools, not tick-box exercises.
3. Reinstatement Cost Assessments (RCAs)
Dan Lane led on this informative segment.
- RICS guidance requires a “major review” of the declared value every 3 years at a minimum. Desktop reviews in between are useful in allowing policyholders to set their own DV, rather than relying on the insurer’s suggested index linking.
- Cutting corners with “desktop-only assessments” inflates declared values and premiums.
- However, underinsurance remains rampant – affecting around 70% of UK buildings, explained John Batty.
- RCAs should include demolition, debris removal, professional fees and VAT where applicable – with extra care taken as to how the VAT is applied.
Takeaway: Accurate RCAs protect leaseholders from both overpayment and catastrophic shortfalls. Education is vital – Emma Blaney underscored the IDD requirement for property managers arranging insurance to complete 15 hours of CPD per year, especially RCA CPD.
4. Escape of Water – A Growing Crisis
In response to Claire Bates’ question on the urgent need for proactive plumbing inspections, quoting the ABI’s £1.8m per day EoW claim cost, Leanne Philp noted that rising EoW excesses are effectively excluding cover in practice so something does indeed to be done.
- Proactive plumbing inspections in flats are a must; most claims start inside apartments, not in communal systems.
- Scare statistic shared: escape of water accounts for up to 56% of property insurance claims costs in blocks of flats within Anthem Management’s portfolio – and far higher in other portfolios.
Takeaway: The industry must move from reactive to proactive strategies, tackling leaks at source through inspections and risk management programmes.
5. Market Dynamics: Soft vs Hard Market
Vedia Johnson asked: “We’re in a soft market right now, with premiums easing after years of painful increases. But how long can we expect this to last? Are we looking at a temporary reprieve, or has the insurance sector genuinely reset its appetite for blocks of flats?”
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John Batty explained why we’re in a “soft market” now, with premiums easing after years of sharp increases. But the panel provided a warning.
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A major catastrophe, withdrawal of insurer capacity, or regulatory shock could rapidly harden the market again. A slower hardening is inevitable, early in 2026.
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Affordability, especially in fire-affected buildings, remains fragile.
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Far too few brokers signed up to the Broker Pledge but 15 (at the time of Proper Talk) was an improvement on the 5 that signed the pledge originally.
6. Training & Professional Standards
Jaclyn Mangaroo emphasised that The Property Institute (TPI) is pushing for higher training standards among managing agents. Yet too many agents are still involved in arranging insurance without sufficient knowledge or qualifications.
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Jessica Redwood stated that not all buildings insurance policies are the same yet they are treated by parts of the property management sector as if they’re generic. Unoccupancy, subgrogation, average, asbestos exclusions and flat roof conditions are all terms that property managers procuring insurance should be perfectly aware of – or risk being caught out.
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Adam Sanders expressed concern over variation in quality of building safety assessments, highlighting how inconsistent and unreliable some reports can be, asking what brokers and insurers should be doing to standardise and streamline the flow of accurate risk information. The 5-year validity of EWS1 forms had started to expire, and insurers would do well to insist on high quality FRAEWs to assess the risks posed by combustible external walls.
Takeaway: Insurance training of anyone involved in the insurance distribution chain is vital. Without regular and robust insurance-related CPD, property managers put both clients and themselves at risk.
7. Special Topics & Audience Engagement
The event also covered:
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Terrorism insurance – the Qdime case confirms that cover is usually service charge-recoverable, even if terrorism is not specifically mentioned. If leases require protection against “explosion.”, it is reasonable to secure the cover. Solicitor Matt Lewis reminded us of this seminal tribunal determination.
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Professional Indemnity (PI) – some agents are still on policies designed for surveyors or estate agents, though fit-for-purpose cover is now commonplace. Ben Hume raised the thorny issue of when to notify insurers about potential PI claims, suggesting managing agents often found themselves between a rock and a hard place.
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Inverted roofs & solar panels – insurers are penalising blocks with combustible insulation beneath PV installations, underlining the need for early disclosure and mitigation.
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Director & Officers (D&O) insurance – essential for RMC/RTM directors, but often misunderstood in terms of scope of protection.
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Cyber cover – With service charge accounts, personal data and building safety records online, how exposed are managing agents if they don’t have cyber cover? The panel were united in their approach to be prepared, beef up their systems, and take out the appropriate cover.
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Estates of freehold houses – Nick Faulkner posited that the likely extension of s27A to cover freehold houses paying an estate charge would lead to a flurry of additional claims in the FTT and RMCs are ill-prepared to defend such claims. Serendipitously, John Batty announced a new Bridge product designed for such estates, launching this autumn 2025.
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Artificial intelligence to replace insurance brokers? Mike Somekh asked: “If AI tools can already benchmark premiums and wordings, what’s the real value-add of the traditional insurance broker to an RTM, beyond compliance?” John Batty defended the value brought by human insurance brokers, although he suggested that panel moderators would be first in line for replacement by AI!
Audience polls and myth-busters kept energy high, revealing widespread uncertainty on policy wordings, exclusions, and regulation. The 7th Proper Talk shone a spotlight on insurance as one of the most complex and high-risk areas of block management. Key lessons included:
- Prepare for commission bans – fees and fair value are the future.
- Secure FCA regulation or am RICS DPB exemption – unregulated firms may not be able to charge “permitted fees”. The co sec “loophole” may be removed.
- Get RCAs right – underinsurance is widespread and dangerous.
- Invest in CPD and training – 15 hours per year is a legal requirement (under the IDD), not a suggestion.
- Address escape of water proactively – prevention saves premiums and a catastrophic disruption.
- Don’t waste the soft market – build resilience before conditions inevitably harden.
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Ask your broker about cyber cover now.
Proper Talk will continue into 2026, with future sessions tackling the most pressing issues facing the sector.
Want to attend a future event? Fancy asking a question, or joining a future panel? Get in touch with Jonathan Channing at jonathan@jcpropertyconsultancy.com
