Insurance: Navigating a Challenging Market
With ever increasing pressure from customers, disruptors and regulators the insurance industry is no doubt experiencing a tough financial climate. Low interest rates and increasing claims costs has led to an unprofitable 12-24 months for many major insurers, and with the industry still under stress businesses are already starting to feel the flow-on effects. As global market conditions harden, businesses are finding themselves being hit with increasing premiums, higher excesses, and lower limits of coverage and liability offered.
However, managing rising costs and cover restrictions will not be the only challenge facing businesses. As part of many insurers plans to improve their bottom-line, they have intensified their requirements for detailed underwriting information. These stricter requirements have led to a rising number of poor underwriting submissions being declined, increasing “backwards and forwards” communication between customers, brokers and insurers.
The result: Businesses like yourself are now being forced to answer a myriad of underwriting questions to meet harsher insurer demands, creating additional workload and unnecessarily prolonging the renewal process.
Who is the hardest hit?
While the insurance market has hardened in general, there are particular industries and products that have are the focal point of most insurers:
What can you do about it?
As affected businesses are likely to be required to supply additional information to obtain cover, there are a few things that you can do to reduce the impact of a hard market:
For further questions on how the changing insurance market impacts your business and risk, please contact us or speak to Tim Valtwies on 9283 1666.
Content provided by Ryan Neary and Charles Galayini from GSA Insurance Brokers