High-hazard clients seeking industrial special risk (ISR) cover make up the most challenging sector of the hardening insurance market, according to Gallagher.

Commercial property premiums are rising rapidly after years of stability, and some domestic insurers are retreating from certain segments.

London and Singapore remain the “international markets of choice” for placing high-hazard ISR business, but even there capacity is finite.

“It may be prudent to try to bring renewal dates forward to secure the optimum program at more accessible rates,” Gallagher says in its latest quarterly market report.

It says clients may need to make structural changes to insurance programs, including having more insurers present on policies and carrying more risk through higher excesses or self-insurance.

“It is better to start preparing for these changes earlier in a bid to minimise their impacts.”

The broker says a clear “go-to-market strategy” is required, and data helps build trust.

“Sophisticated international insurance markets look at risk on a client-by-client basis, so it is vital to highlight the positives of your business.

“Compliance data, for example, allows insurers and their engineers to check through a list of safety measures a business already has in place. Hard-to-place property risks are facing an uphill battle when it comes to premium pricing and placing cover.

“However, using as much data as your business has on its risk profile will help build trust with insurers.”