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COVID-19 and the impact on insurers losses

Have you seen an increase in your insurance costs and the cover that is now available to you from your broker and insurers?  Insurance rates have been on the increase for the last nine consecutive quarters, before the impact of COVD-19, due to several factors including:

Significant global catastrophe losses ($100bn+ per annum) in 2017-2019 (hurricanes, windstorms, typhoons, wildfires etc) which has fed through to the UK market.

  • UK claims for flooding/storms are increasing in both frequency and severity on an annual basis.
  • Double-digit attrition claims inflation on Motor Fleet and Liability losses due to Brexit and exchange rates, growing claims litigation culture, regulatory reforms (e.g. Ogden Rate).
  • Property losses from cladding since the Grenfell residential fires and various food/hotel fires have had subsequent impact.

This has meant that several insurers and Lloyds syndicates now no longer offer cover options to certain areas including the care sector and means:

  • Fewer markets to compete, so insurers can drive pricing and impose cover changes.
  • Insurers are now highly selective when looking at new clients and will target the best risks based on CQC and claims performance.

Find out more here.

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