How the biggest loss in insurance history affects enforcement

How the biggest loss in insurance history affects enforcement.

Enforcement industry specialist Darren Coldspring from Verlingue, a leading UK chartered insurance broker, shares his advice on reducing the likelihood of increasing premiums.

The global claims cost of Covid to the insurance industry is estimated to be over $200bn making it the largest loss in history. As a result, many insurers are exiting the market, meaning less competition, whilst those that remain are rapidly increasing premiums to bring their businesses back into profit. None of this is good news for business insurance buyers.

The greatest effects of premium increases can be seen in Employers and Public Liability, Professional Indemnity and Directors & Officers insurance, all of which are common covers for businesses operating in this sector. Typical increases across the market range from 15-35% for these classes of business so it’s very likely that overall insurance costs are set to rise for many companies.

The companies that can best demonstrate to insurers that they have taken Covid seriously and have taken robust precautions to manage their business and prevent claims will fare best when it comes to renewal negotiations. There are number of steps you can take which may assist with reducing the likelihood of an increase in premium:

• Risk Management

Take measures to manage and minimise risks in your business such as providing employees with the correct PPE and ensuring working practices, customer interactions and workplaces are COVID safe.

• Talk to your broker

Make sure that you communicate regularly with your broker so that they know about the safety measures you are implementing and can inform your insurer. The objective is to make your business seem much more attractive than others in your peer group.

• Start early

With the difficult trading conditions in the insurance market you are likely to have to provide much more information than usual and obtaining quotes is taking much longer than normal. We recommend that you provide your broker with your renewal information as early as possible to ensure there are minimal delays.

If you are worried about the rising costs of insurance, now might be the time to review your insurance programme to ensure you are getting the best value for money. The possibility of customers or employees contracting Covid is still a big concern to everyone at the moment. It’s never been more important to work with a broker who understands your sector and has access to markets.

At Verlingue we have a specialist insurance scheme for CIVEA members. This scheme enables us to keep premiums cost effective and consistent for members. To speak to me about this or anything else, you can contact me via email.