Grenfell insurer almost doubles premium following ‘unprecedented loss'
A Spanish insurer that covers leaseholder building insurance for the Royal Borough of Kensington and Chelsea will raise premiums by 86% as a result of the Grenfell fire.
Ocaso SA signed a five year deal with the council in April 2016, but has raised its premiums significantly from next month as a result of “unprecedented loss” from the fire.
The premium has risen from £796,518 in 2017/18 to £1.5m in 2018/19, an 88.3% rise that also factors in the rise in insurance premium tax.
A report to the council said losses from the fire accounted for approximately 40% of the premium increase.
The report said: “Ocaso SA, will see a significant and unprecedented loss in the 2017/18 policy year due to the Grenfell Tower fire and the leasehold units that were part of the tower.
“This has therefore caused a major deterioration in the claims costs for the policy and inevitably results in an increase to the 2018/19 premium being charged by the insurers.”
The company was not immediately available for comment.
The council will open a tribunal to determine whether it is reasonable to pass on the costs to leaseholders.
A leaseholder in a two-bed property will face a £576.75 bill, while a four-bed property leaseholder will pay £697.69.
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