The research, which was carried out by insurance consultancy Gibbs Laidler Consulting, found that as well as premiums increasing by a staggering 65% on average in the last two years, there are fewer insurers in the market, whilst housing associations are also facing more restrictive insurance terms.

Gibbs Laidler interviewed a number of housing associations throughout Scotland and found that between April 2022 and April 2024, premiums have risen some 65% with some of the sharpest increases being 115% across the two-year period.

SFHA commissioned the research last year after receiving reports from various members about the significant challenges obtaining insurance.

A housing association or co-operative’s ability to obtain insurance is vital as they are in receipt of public funds, and it is also frequently a requirement of private loan terms.

The research also found that there are fewer providers for a range of insurance products such as property, vehicle, and cyber insurance.

It added that exclusive arrangements between certain insurers and brokers meant that no single insurer could provide quotes for the entire market, meaning many housing associations were viewing a limited picture of the overall market.

Restrictions on the terms of insurance coverage was another significant issue the research highlighted. It found that typical reductions in cover often included: the removal of single event excess, removal of rate guarantees, limited cover of certain buildings, and more restrictive storm/flooding terms.

However, despite significant challenges, the report said that there may be grounds for optimism over the next two years as rising rates and premiums may lure additional insurers back to the market.

Reacting to the report, SFHA chief executive Sally Thomas said: “We knew that it was increasingly important to our members to do this work, given the hugely challenging market that housing associations face. Yet they simply cannot function without a healthy insurance landscape.

“Ahead of the new financial year, when many of our housing associations assess their insurance policies, this provides a really important deep dive into the market and, crucially, outlines both ways forward and some hope for optimism.”