Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate the Financial Services Compensation Scheme has made of the costs (a) of high rise building remediation work taken on by the FSCS and (b) to each insurance company that originally wrote the building insurance.

The Financial Services Compensation Scheme (FSCS) provides protections to the eligible customers of failed insurers regulated by the Prudential Regulation Authority (PRA), subject to the conditions, limits and requirements set out in PRA rules.

In the context of high-rise building remediation work, East West Insurance Company Limited (EWIC) is the sole insurer default where FSCS has stepped in, in line with its remit. The best estimate for the costs to resolve building remediation work covered by EWIC policies is approximately £335m. However, it is too early to estimate the costs that will fall specifically to the FSCS in this case, as some costs may be met by other parties.

The FSCS does not hold information on the costs to each insurance company that originally wrote the building insurance to cover this type of risk, as insurers in the live market have not been declared in default.