The major issues driving the insurance affordability dilemma have been the aggregation of property insurance premium increases over recent years combined with a sluggish economy. This means premium increase growth has significantly exceeded business income growth therefore it is now a much larger percentage of business expenses compared to a few years ago.
There are many factors influencing the property insurance market, and changes in these areas may influence premiums in the future. These include reinsurance costs, worldwide catastrophes, stamp duty, interest rates and the future possibility of further competition.
One of the most important things you can do is talk to your insurance advisor to discuss options that may assist in meeting your insurance needs, understanding what affects your insurance premium and reviewing this regularly. Some tips include:
• Reviewing your sums insured. Are the valuations on your premises, assets and vehicle fleet up to date?
• Reviewing your turnover. Has this figure also been updated?
• Reviewing your excess. Increasing your excess may reduce your premium significantly.
• Comparing insurers.
• Insure properly. Whilst trying to reduce premiums where possible, it is important not to underinsure and leave your business exposed.
• Consider professional/management liability, contractual liability, fraud, internet and other emerging risks.
By building a long-term relationship with an insurance advisor who understands your business, you can work together to understand and minimise premiums where suitable without forgoing appropriate cover.
General Advice Warning. This is general advice. General advice is advice that has been prepared without considering your current objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of the advice having regard to your current objectives, financial situation or needs. If the advice provided relates to the acquisition or possible acquisition of a new insurance policy you should consider the PDS prior to making the decision to purchase this product.