UK Companies are seeing premiums for business cover discounted by up to 20% this year, following fewer claims last year and a more proactive approach to risk management within those companies.
Competition has also helped reduce premiums, with many new insurers looking to gain a foothold in the market.
However escalation in risk involved with the new legislation relating to the Corporate Manslaughter Act, record product recalls and 15% increase in employment tribunals, are all set to take their toll on future premiums.
The sub prime market has not impacted on this market as deeply as anticipated, but Mark Crawford broking director at Aon, warns that corporate premiums are usually the last to turn.
Crawford said “Without significant insurer financial failure or major losses in the meantime, we’re forecasting rates to be on the rise by 2010. Premiums will turn and there are likely to be big swings so companies cannot afford to be complacent. They must focus on making their business robust to risks ranging from data loss and property damage to employee injury and directors’ liability. This will prove to insurers that they have strong risk management which will help to mitigate the swings in premium.”
You have been warned.
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