In this time of inflationary pressure and slow economic growth, insurers have a critical role to play in loss prevention and reduction to help businesses to succeed. However, businesses and households need to be aware that it will cost more to provide the same level of cover, and as a result, the insured should expect inflationary increases particularly if they have submitted an above-average number of claims in the preceding twelve months. Clients should also very seriously consider increasing their sums insured above current inflation levels to protect themselves against under insurance in the following months.
In times of economic stress, many people find it difficult to make ends meet. At times like this, it is important for clients not to simply let their insurance lapse but to speak with their broker to determine what it is essential for them to insure and particularly what they cannot afford to replace or pay for themselves.
Liability cover is a prime example. Most businesses and individuals never have a claim lodged against them as a result of a faulty product of theirs causing injury or damage or because of a motor accident or because a fire that started on their property spread to a neighbour’s property, but if they do have such a claim against them, the chances are they will not be able to meet that claim unless they have adequate liability insurance in place.
The converse is true in respect of the loss of a cellphone. It is likely that most people will lose a cellphone at least once in their lifetime, but it is also probable that replacing it will not bankrupt them. So, what should you insure if you have limited money to pay premiums? In my view, the liability can bankrupt you rather than the cellphone that you can replace. Tailor your cover in this way is the huge benefit of talking to your broker!
As insurers, we rely heavily on our brokers to continue educating clients that it is critical to remain adequately and sensibly insured during tough financial times. The role of brokers is more critical than ever in educating clients on the potential impact of inflation on their insurance coverage. The broker can help to assess the risks of underinsurance, as well as provide regular updates and advice on any adjustments to their cover as new risks emerge.
Infiniti Insurance Limited is an A-(ZA)-rated non-life insurer writing general business personal and commercial cover as well as specialist lines including Aviation, Engineering, Construction Guarantees, Liability, Marine, Watercraft and Gap cover.
We pride ourselves on our strong partnership philosophy offering a diverse range of insurance solutions for the non-life insurance market. We focus on long-term partnerships with specialist entrepreneurs and independent owner-managed brokerages.