The results revealed that Covid-19 exclusions were appearing on new business and renewal across many classes of business with more than half of respondents being notified by insurers to withdraw or restrict cover. The survey highlighted care homes, retail, hospitality, leisure, travel, cleaners and event organisers as being the sectors hardest hit by a perfect storm of capacity leaving the market, significant premium increases and Covid-19 exclusions.
In mid-July 2020, another survey of BIBA revealed that few insurance brokers reported being able to secure full cover for a large proportion of their care home clients. 70% of respondents expected application of Covid-19 exclusions in the next six months, 22% expect particular difficulty renewing employers’ and public liability and only 9% anticipate no difficulty with care home renewals. Government intervention on designated settings was most welcome but the market remains extremely challenging.
We called for an increase in the cladding remediation fund. Government has now tripled the fund to £5bn and announced a commitment to work towards a targeted, state-backed, indemnity scheme for qualified professionals unable to obtain professional indemnity insurance for the completion of EWS1 forms. However, there is now a growing problem of the availability and affordability of property insurance for high-rise, cladded buildings and are working hard to muster more capacity.
As the market becomes more selective, clients must work with their brokers to agree a clear strategy to engage with the market to articulate how their risk is better managed than their peers. The quality of risk presentation by the broker has never been more important in this process to ensure the best terms are secured from the market. A disciplined timetable for market engagement is crucial. Renewal timeframes are generally becoming longer which means you must start the whole renewal or rebroking process far earlier with more preparation of data.
Originally posted by The Society of Insurance Broking
This guide is for information purposes and based on sources we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.