Underwriters see upward path for UK corporate rates
UK underwriters surveyed by Aon see corporate rates hardening significantly in coming months.
Some 92% expect motor insurance premiums for UK companies to increase in the first quarter of 2009. The underwriters also saw a lift in property rates (74% of those surveyed) and in liability (69%).
Aon says insurers are looking to make up for three to four years of competitive rates.
“Now poor profits, the rising cost of claims and the challenges of the tough economic environment are driving the expectation of rate increases in 2009,” the broking giant said.
Steve Redgwell, head of broking for Aon’s mid to large-sized UK companies, says a shift in insurance market conditions is imminent.
“For example, we are already seeing challenges in capacity available for certain industries, such as the food sector,” he said. “Insurers are placing greater attention over the commitment and focus of businesses on the management of risk where the trend is that of a high volume of losses, such as in the retail sector.”
He says underwriters are still hungry for new business. It’s still possible for companies to achieve highly competitive rates as long as businesses can show they have a good risk management culture.
Some 92% expect motor insurance premiums for UK companies to increase in the first quarter of 2009. The underwriters also saw a lift in property rates (74% of those surveyed) and in liability (69%).
Aon says insurers are looking to make up for three to four years of competitive rates.
“Now poor profits, the rising cost of claims and the challenges of the tough economic environment are driving the expectation of rate increases in 2009,” the broking giant said.
Steve Redgwell, head of broking for Aon’s mid to large-sized UK companies, says a shift in insurance market conditions is imminent.
“For example, we are already seeing challenges in capacity available for certain industries, such as the food sector,” he said. “Insurers are placing greater attention over the commitment and focus of businesses on the management of risk where the trend is that of a high volume of losses, such as in the retail sector.”
He says underwriters are still hungry for new business. It’s still possible for companies to achieve highly competitive rates as long as businesses can show they have a good risk management culture.