Bridgehaven Specialist UK Limited and managing general agent (MGA) IWG have entered a strategic partnership to offer a new insurance-backed guarantee (IBG) product, aimed at covering defective workmanship in the installation of domestic heat pump systems.
As part of the agreement, IWG will underwrite the IBG policy for Iknowa, a platform that connects homeowners and commercial clients with property and building service providers.
The policy will cover installations completed by engineers trained under the Iknowa system and will run for an initial term of three years. It is designed to provide customers with recourse in the event of workmanship issues following the installation of small-scale heat or power generating systems at domestic or commercial premises.
The launch comes at a time when the quality of heat pump installations in the UK has come under increased scrutiny. According to survey data published by Renewable Heating Hub, only 10% of respondents described their installation as fault-free.
Meanwhile, 22% reported dissatisfaction and 13% said their systems were not fit for purpose. In addition, data from the Renewable Energy Consumer Code (RECC) shows that complaints related to installations averaged between one and 18 per month between 2019 and 2021, with over half of these involving installation problems. Other industry assessments have identified a high incidence of incorrect system sizing and poor workmanship, both of which contribute to underperformance and customer dissatisfaction.
Paul Dilley, chief underwriting officer at Bridgehaven, said the arrangement reflects the firm’s approach to working with specialist distribution partners on sector-specific risks. He noted that IWG’s expertise as an MGA supports the development of insurance products that respond to technical challenges in the renewables sector.
Meanwhile, Richard Edgar, director at IWG, said the collaboration is designed to combine Bridgehaven’s sector focus with Iknowa’s installer network and digital infrastructure to provide support to property owners.
The new IBG product is intended to support consumer confidence as the adoption of low-carbon technologies, such as heat pumps, continues to increase in line with the UK’s net zero targets. It also aligns with wider efforts across the industry to raise installation standards and reduce performance-related complaints.
