You may find your business’s insurance facing rate increases as the insurance market becomes more challenging. Why? Insurers are looking to balance their books with either reduced capacity, pulling out of some risk areas, and/or revisiting terms and conditions. This is known as a ‘hard insurance market’, but what does that mean?
The care sector has been gradually facing a hardening insurance market as fewer insurance companies are prepared to provide cover. In recent months some of the main remaining insurers have withdrawn leaving the situation even more difficult. On top of this the insurance industry in general is seeing a sharp rise in premiums and a reduction in the cover they are prepared to offer. This is bad news for the care sector, already under pressure from the impact of Coronavirus.
Recent months have seen various sectors of the construction industry hit by a rapidly hardening insurance market, with premiums increasing 2, 3 or 4 times, cover reduced, restrictions imposed and in worst cases insurance has become unavailable. Everyone from architects & surveyors to contractors and suppliers are under pressure.
The insurance industry is experiencing its hardest market in 20 years, with premiums increasing, breadth of cover being restricted, policyholders being asked to comply with harsh conditions and some businesses struggling to obtain insurance at all.