Posted Thursday, September 10, 2020
According to our Head of Insurance Steve Harris, this is likely to be because of several market shifts. Although the market costs for materials have decreased by 1% over the past 12 months (National Statistics April 2020), insurers do not see this continuing. Also, with the Coronavirus furlough schemes ending, many insurers believe there will be fewer people returning to work for contractors, which, combined with exiting the EU will mean a drop in the availability of European workers, leaving many contractors employee light.
There are also fewer insurers in the market, and what was acceptable 12 months ago is now not for some risks, with insurers becoming increasingly particular about what risks they will underwrite.
What does this mean for property owners?
With fewer insurers and less competition, there is no doubt that premiums will rise. Material costs increasing and a reduced contractor labour market will also affect premiums. Demonstrating good maintenance programmes and a sound Health and Safety approach will help.