We research global trends, so our clients get the best advice on how to get the best and most affordable coverage – read this for our predictions.
We are amidst a hard market in the insurance industry worldwide. This type of market means that premiums are increasing while the capacity for different types of insurances is decreasing. In addition, the coverage being offered is becoming more stringent and narrow, and in general, there is less competition between the insurance providers.
We are seeing this across the board, but the impact is most significant for a few sectors:
- Property Insurance – especially for our beachfront hotels and condominiums
- Business Interruption
- Worldwide Public Liability
- Professional Indemnity
- Directors & Officers
- Cyber Liability
Based on our personal experience at Tomlin, our Cyber Insurance cost increased by 30% this year and the insurer reduced the coverage. This can be a hard pill to swallow – and we definitely feel it too!
We think it’s essential to prepare for these difficult times, and we are here to help you along the way. While we discuss these tips frequently with our clients, especially during their renewal cycle, it can never be reiterated enough. Here is our assessment:
We predict new types of policies – so reassess your exposure
The insurance sector is expanding. New and unique types of policies are forming to match the risks and exposures the world faces. Five years ago, we would have told our commercial clients that the four pillars of their insurance portfolio are Property Damage, Business Interruption, Public Liability and Employers Liability. Five years later, a lot has changed, and we strongly feel that our clients should consider the fifth pillar of their portfolio: Cyber Insurance.
The exposure to Cybercrime is very real, and we are seeing more and more cases of our clients being affected by this. Cyber has different levels of coverage from ransomware to client data breaches and social engineering.
On the other hand, there may be additional policies you may have purchased for many years that you might no longer need. A great example of this is Money Insurance. As we move into a virtually cashless world using credit cards and online bank transfers, it may not be necessary to continue buying Money Insurance or at least high limits of this coverage.
We foresee benefits for good internal risk management
We pride ourselves on offering risk management solutions to our clients. Some of our clients do an excellent job themselves with risk management and it’s important that we highlight this to the market to show your risk off and fight on your behalf for best possible rates and coverage. If there are elements of your risk management protocols you take pride in, please tell us! What makes your business stand out from the next?
We believe timing will matter and planning ahead is crucial
While we balance finding the ‘sweet spot’ between approaching the market too early versus waiting too late to negotiate terms and rates, we can plan ‘internally’ with our clients in advance. We can discuss whether any major changes to the business have transpired and whether there are any new elements of the insurance to consider. We enjoy having pre-renewal meetings a couple of months before their renewal cycle.
In addition to the above, pre-renewal meetings allow us to provide you with our predictions for what to expect and budget for.
Tomlin Brokers is the premier insurance broker for commercial insurance, and we take pride in researching the global trends and predicting what we should prepare our clients for. We are always planning ahead for our clients’ renewal cycles and anticipating their needs before requesting it. On top of staying ahead of the curve in terms of trends and new coverages being offered, planning and delivering excellent customer service is essential.
If this article speaks to you, please reach out to us and let us know your concerns. We are happy to help!