Building Safety Bill (Tenth sitting)

Debate between Brendan Clarke-Smith and Ruth Cadbury

Thursday 23rd September 2021 Public Bill Committees

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I share the concerns about what is happening to the insurance industry in the context of building safety. I also share the concerns raised by my hon. Friend the Member for St Helens South and Whiston about the Bill’s reliance on secondary legislation for so many elements, including insurance.

I want to highlight a couple of issues that the insurance industry has raised with us. We have had submissions from AXA—one of the biggest insurers in the country—and from the Association of British Insurers, which says that it is

“concerned that significant detail is left to secondary legislation.”

The ABI has raised specific concerns about the availability and affordability of cover for fire safety works, an issue that is already hitting a number of professionals in the construction industry. It is concerned about the confusion over the definition of the accountable person and the building safety manager roles, and how that impacts on their ability to obtain professional indemnity insurance. It wants more detail so that there is no “potential for confusion”. The ABI is also concerned about the

“legal position where there may be multiple APs responsible for a building”,

and it is seeking

“a better understanding of the liabilities that flow”

from the issues of underwriting PI insurance, and particularly how those liabilities are split between the two roles.

The ABI goes on to say that

“the current market conditions make it a sub-optimal time”

—I love the term “sub-optimal”; it basically means “a rubbish time”—

“to be launching any kind of new regulatory framework requiring mandatory PI cover.”

Of course, we all want everyone involved to have adequate insurance cover in some form or another.

[Brendan Clarke-Smith (Bassetlaw) (Con)]

I appreciate a lot of the hon. Member’s points and I share concerns about the very difficult situation. Does she agree, however, that if the legislation is too prescriptive, we could end up restricting the industry and as a result make it more difficult for it to adjust to what are actually asking it to do?