The past year or so has been tough – tough for all of us on both a personal and business level. We can’t make financial stresses go away but we are here to help you address your insurance needs as best we can.
Rising Cost of Claims
Insurer’s claims costs are rising and, while that might not solicit much sympathy, it is a fact that can’t be ignored. It’s not unusual to see insurance prices rising but right now we are seeing something fundamentally different:
- Scope of insurance cover is being restricted by many insurers
- Availability of insurance for some risks is changing
- Insurers are exiting markets
- A number of insurers have gone bust – for example: Gable; Gefion; Alpha; Enterprise; Qudos; Lamp.
Why … what’s going on you should ask?
There are a number of reasons the cost of insurance is rising, including:
- Climate change – it’s raining, storming and blowing a gale far more frequently and to a greater extremity
- Injuring someone is expensive and getting more so
- Covid-19 claims will undoubtedly have an impact on some insurers
- Insurers are finding it harder to make a return on the cash they invest and the regulator insists they keep more money in the bank, leaving less to invest
- Reinsurance costs are rising – making it more expensive for insurers to buy the insurance they need to protect themselves
- Poor professional advice claims are accelerating at an alarming rate
- Directors and Officers liability claims are becoming more prevalent
- Motor claims are bigger as the cost of vehicle repair costs increase. This is largely due to sophisticated onboard computer systems and sensors that are expensive to replace or repair.
Insurance has and can only ever be part of the way in which a business can protect itself from risk. Risk transfer has just become a lot more serious and risk management and the way in which business leadership looks at risk is no longer playing second fiddle to price.
We will do our best ALWAYS to get you as much cover as you can afford and ensure that you are making conscious buying decisions. Trust us to give you the best possible advice around what it critical to you.
If you don’t think we understand you and your business needs – tell us!