Rebecca Fuller, Managing Director and Head of Fixed Asset Management and Insurance Solutions, EMEA, was recently interviewed by Insurance Times on how brokers need to engage business owners to address underinsurance in a hard market.
With a gradual shift from a soft to a hard market, causing higher risks for business owners, Rebecca explains: “It is now a sellers’ market, with insurers having more control in dictating pricing, terms and conditions.”
“We have seen that the risks associated with not having justifiable adequate values are above market rate increases, declining to renew coverage, or having a valuation undertaken being made a condition to the policy,” she adds that “average being written into the policy” is another risk business owners are now facing.
Rebecca goes on to talk about the reasons why a business might be underinsured and what brokers can do to help their clients.
“Our latest study showed that out of 1,504 buildings in the UK, which we valued in 2019, 71% were underinsured by 25% or more; the percentage of those properties being underinsured by 100% or more was equally as staggering. Brokers should draw on factual data like this and use statistics to support them in their quest to give a better breadth of advice,” she explained.
Subscribers of Insurance Times can read the article here.
