’The partnership signals our longer-term strategy,’ says managing director
Specialist insurer Financial and Legal Insurance (FLI) has formed a new partnership Legal Protection Group (LPG) to grow its presence in the private rental sector.
A statement released yesterday (18 July 2023) said the move would see LPG distribute products manufactured by FLI and underwritten by FLI’s own insurance company.
These products will offer a range of protection for landlords, including legal expenses, rent guarantee and home emergencies cover.
Karen Beales, managing director at FLI, said: “The financial difficulties faced by tenants during the pandemic, as well as changes to tax and other regulations, mean landlords have been through a difficult period.
“Some insurance underwriters have left this market altogether, but we see a real opportunity to work with LPG and deliver a profitable insurance solution with strong customer appeal in this sector.”
Long-term strategy
The private rental sector accounts for 19% of all UK households.
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FLI noted that demand for rental properties was increasing as interest rates rise, with people delaying buying a property or putting it off completely.
Beales said the partnership aligned to FLI’s longer-term strategy, which is to underwrite a wider portfolio of products beyond legal expenses insurance.
“We have worked hard to ensure our home product meets the emerging requirements of the marketplace, in particular the importance of being fully compliant,” she added.
“The partnership signals our longer-term strategy to build on our reputation for providing LEI solutions and grow through a portfolio of products.”
Martin Rowan, chief executive of LPG, said: “FLI has a great reputation in the LEI space and we are thrilled to be part of their plans to go beyond LEI into landlords protection at a time when demand for these products is bound to rise.”
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