How are insurance firms proactively dealing with underinsurance in the commercial lines market?

(Article by Insurance Business UK article - Jan 2023)

The FCA have warned insurers to value insured assets properly both in personal and commercial lines.

(Article by Insurance Business UK - January 2023)

UK subsidence claims increased by 140% in September 2022 (source: Allianz Commercial) due to adverse soil conditions brought on by a hot/dry summer and drainage leaks. Subsidence is a complex risk resulting in lengthy claim resolutions.

(Article from Insurance Business UK - October 2022)

"Research by Zurich has revealed that two-fifths of London businesses are at risk of being hit by flash floods as heavy rainfall is predicted to hit the capital. Parts of London are already experiencing flash flooding after this week’s thunderstorms, with more rainfall forecast in the coming days and weeks. Zurich’s research has shown that flooding from torrential rain threatens 42% of the capital’s 301,000 commercial buildings, while nearly half of London’s 33,200 basements in commercial use are at risk of flooding.”

(Insurance Age - August 2022)

"Insurance claims from companies have become more severe over the past five years due to factors such as higher property and asset values, more complex supply chains and the growing concentration of exposures in one location, such as in natural catastrophe-prone areas,” said Thomas Sepp, chief claims officer and board member at AGCS. “The future does not look bright anytime soon.”

Read the full article from Insurance Business UK here on trending commercial risks that may impact on business interruption and damage replacement costs.

(Insurance Business UK - July 2022)

"Events such as the war in Ukraine and growing inflation have “significantly altered” business leaders’ perceptions of risks, with corresponding risk resilience falling dramatically since 2021.

This is according to insurer Beazley’s latest Risk and Resilience 2021 research, published today (13 June 2022). This showed that the proportion of surveyed UK and US business leaders ranking war and terror as their biggest risk was up by 46% compared to last year’s survey."

(Insurance Times - June 2022)

The Association of British Insurers estimates a total of £473m and 169,500 claims in property damages have resulted from UK storms Dudley, Eunice and Franklin in February 2022. This Insurance Age article shows the importance of and how insurance brokers can help during natural emergencies and disasters.

(Insurance Age - April 2022)

"Materials cost index reveals rising costs and added pressures

Commercial property premiums could rise next year as latest data reveals the soaring costs of materials.

Construction material costs in the UK have reached a 40-year high based on the annual growth of the index."

(Insurance Times - December 2021)

"Aviva has published the second edition of its annual look into the biggest risks facing businesses in the UK, and public health events no longer holds the top spot...according to the 43-page 2021 Aviva Risk Insights Report.”

Read the full Insurance Business UK article on “major risks that business leaders believe they are particularly exposed to."

(Insurance Business UK - November 2021)

"An insurance brokerage is offering a reminder to all business owners that the national shortage of building materials has a knock-on effect on their insurance costs.

H&H Insurance Brokers is warning that the UK is undergoing a huge shortage in building materials – mainly due to disruptions caused by the COVID-19 pandemic and partly because of Brexit. The shortage has led to the prices of timber and steel rising rapidly month-over-month. The broker also pointed out that in September 2021, the price of timber surged by 23% – and it is currently 64% higher than its price in July 2020."

(Insurance Business UK - November 2021)

“Despite the bill being welcomed, insurance industry leaders highlight concerns for buildings under 18 metres tall as ‘fire does not respect arbitrary height limits’

The government published its Building Safety Bill yesterday (5 July 2021), aiming to create lasting change and a clear pathway for the future on how residential buildings should be constructed and maintained.”

(Insurance Times - July 2021)

“In a joint report, the ABI and Flood Re underline the importance of maintaining flood defences

Flooding is the ”greatest natural disaster” risk in the UK, with losses suggested at around £958m a year minus defences, according to a joint report from the Association of British Insurers (ABI) and Flood Re, published today (16 June 2021).”

(Insurance Times - June 2021)