Reply To: No insurer will cover this scheme

I think the reason is not that relevant as the question is what happens when the OC can’t get insurance; the requirement is they must  have it and there are penalty points for non compliance.
A couple of reasons thrown around include mixed construction buildings and  the insurance company moving away from the type of risk exposure the SP represents; bushy rural landscape. All very hand waving stuff.

To use an analogy: The obligation to maintain and repair is not dissolved because the OC can’t find a repairer even if the OC has diligently sought one.
Same here, I can’t see the mandatory requirement (assumed mandatory due to penalty points applying) being excused because the OC hasn’t found an insurer.