It’s like this, isn’t it…..?
I’m A Good Risk, but no-one seems to listen!
- Being a good risk for insurance purposes is probably not what you think
- Insurance is about the future, not the past
- Insurance premiums are generally unrelated to your own claims data
- For example, if you request a £1m XS, but have no claims above £1m, where does the premium come from?
- Why might this premium double at your next renewal, if your largest claim in that year was only £0.1m?
- We can explain where your premiums come from and provide accurate pre-broking estimates
Insurance Premiums are so Opaque!
- Insurance premiums are simple really, they are generally unrelated to your own claims data.
- Once this simple fact is understood, it will transform your view of risk
I get the same reasons each year for my premiums going up – they look reasonable to me!
- “Your (historic) loss ratio is too high”
- “Your exposure (e.g. headcount) has increased”
- “Your insurer’s published combined ratio is > 100%”
- “The market is hardening”
- “No-one else will insure you”
- “You’ve have had the only large claim in your industry (above your XS)”
None of these are valid reasons for premium increases!
Once the basis of premiums is understood, these arguments can be easily rejected
My premiums have gone up, but I can’t see why?!Irrespective of your claims experience, did you know that these are all valid (and real) reasons for insurers to validly increase your premiums:
- Stock market crashing following Brexit
- Chancellor increases corporation tax, effective immediately
- The insurer’s Head of General Insurance was given a £10m payoff this year (yes, this did happen!)
- You haven’t provided any EML (expected maximum loss) data
- You spent a lot less (£££) presenting your risk than your competitors
- Your presented your renewal information later than your competitors
- The insurer’s solvency position is much weaker than last year
- There have been large market losses (e.g. terrorism), but they did not affect your insurer/class of business
The Insurance Renewal Process is Endless – I’m fed up with it!
- You have the same time-consuming process every year, typically the following:
- Typically: start 4m before renewal, fill out forms, tenders etc
- Occasionally: start 6m before renewal, EML study, fill out forms, tenders etc
- Rarely: start 9m before renewal, understand claims data, EML study, design multi-media marketing approach
We understand the current process and its’ frustrations
We have a better way, proven to work – each stage informs the next