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)

What risks are UK business owners placing their priorities and how is this changing from the previous year? This article looks at the Aviva Risk Insights Report for 2023 and also highlights the importance of adequate cover for businesses.

(Article from Insurance Business UK - January 2023)

“As many as 50% of all UK businesses are underinsured” reports Aviva. How inflation is affecting true insured values and resulting underinsurance.

(Article from Insurance Age - December 2022).

"The regulator has warned that customers’ mental and physical health may suffer when struggling to pay bills

The FCA has written to insurance industry chief executives to warn that they should ensure customers are protected from unecessary costs associated with products, add-ons or unfair penalities as financial pressures mount.

Where poor practice is found, the FCA has stated it will quickly intervene to protect customers from harm.

The regulator has made this move out of concern that underinsurance may become an issue as customers seek savings by cutting back on cover."

(Insurance Times - September 2022)

"Brokers are therefore vital for providing advice to protect businesses through economic headwinds

Small to medium-sized enterprises (SMEs) are being left open to significant levels of uninsured risk due to the UK’s challenging economic environment, Aviva has warned."

“SMEs will obviously be paying close attention to their expenditure as a result. But cutting corners on insurance leaves them exposed to considerable risk – we estimate that 50% of UK businesses are underinsured to some degree and 45% of policies with buildings have at least one premises suspected to be underinsured by 20%.”

(Insurance Times - September 2022)

"The limited coverage is characterised by low coverage limits, long waiting periods, narrow coverage triggers, significant deductibles and long claims processes

There is a misconception that the scope of cyber errors and omissions (E&O) insurance covers all cloud downtime losses, according to the results of the latest survey from Parametrix, published last week (8 September 2022)."

(Insurance Times - September 2022)

"We’re living through a difficult period in our country’s economic history. The cost-of-living crisis comes at a time when we’re still dealing with the lasting effects of Covid-19, Brexit and the ongoing war in Ukraine.

At the same time, we’re seeing inflation rising, increasing fuel and energy prices, and this is having a significant impact across everything including building materials and supply chain issues. All of this is impacting the prices we pay and how long it takes for goods and materials to get to where they’re needed. So, what does this all mean for insurance?"

(Insurance Age - September 2022)