March 17, 2021

Managing risk, insurance & cash flow within your business

At Gallagher we are working closely with businesses across a diverse range of industry sectors, utilising our market influence and industry expertise to help insurance buyers secure optimal outcomes.

There are many factors that influence the insurance market cycle, head to our dedicated cost pressures resource centre and watch our latest video as we explain the insurance industry cycle and how you can mitigate risk while controlling cost within your business.

What’s happening?

The UK insurance market is undergoing a prolonged period of change which is likely to continue for the foreseeable future.

Since Q2 2019 we have seen a greater degree of risk selection by insurers, and moving through 2020 there have been pricing increases across some sectors and lines of business, and reduced capacity provision by most insurers. Using property insurance as an example, premium rates are typically priced 10% higher for lower risk renewals, and significantly higher for more challenging risk types.

The insurance industry has always worked in cycles and, for more than a decade, the market has been in a soft cycle – characterised by flat (or in some cases, reducing) premiums and a broad insurer risk appetite. Over the past two years historic natural disaster losses both at home and overseas, coupled with lower investment returns, have seen the insurance market transition towards a hardening market cycle.

For insurance purchasers, this means that your premium may increase and certain risks may become more difficult to cover. Alongside potential premium increases, it is a good time to review policy wordings with your broker to identify anything that may have changed since the last review of your insurance programme.

The market cycle – how it works

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