The hit that the UK economy has taken during the global pandemic means that businesses should prepare for harder market conditions when they renew their insurance cover in 2021, according to Claire Russell, Operations Director at Appletons, an Associate Member and UKWA’s chosen insurance partner.
Although this will mean higher premiums, with some insurers introducing new coverage limits and adding new terms and conditions to policies to protect themselves in the event of potential further waves of Covid-19, Claire insists the news is not all bad…
“While higher rates of premium are likely during 2021, insurers should be looking at adding value to their clients, by improving the cover and service they provide. Meanwhile, businesses should be considering how they can work smarter and manage their risks more closely, to reduce exposure to claims and improve their insurance position.
When the insurance market is challenging, as it is now; with some covers difficult to place and increasingly expensive, businesses may be looking at how they can make cost savings. However, it is more important than ever not to sacrifice vital cover – or risk under insurance, which could leave your business in a precarious position.
The Covid-19 pandemic has demonstrated the need for building resilience, and businesses can improve their organisational resilience by having the right risk management and insurance program in place.
There has been a great deal of misunderstanding about what perils are covered by different types of insurance. Indeed new risks and exposures have been highlighted as businesses have had to change working practices, exposing gaps in digital capabilities and raising cyber security concerns for organisations – and their insurers.
Businesses need help to identify, manage and, where possible, insure against these new threats. she says.
Research indicates a worrying trend of under-insurance, and the reality is that the Covid-19 crisis, along with Brexit and the impact on the UK economy, may worsen this problem and mean that many businesses are dangerously exposed.
Our advice is that businesses should protect themselves against future threats, ensure that their risk management is robust and insurance programs are fit for purpose, so that they can weather the current storms, continue to develop resilience and thrive for the long term.
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