It may be bad news for consumers, but higher premiums are good for us all
Insurers have been able to raise premiums over the past 12-18 months. While no one likes to pay more, these increases are long overdue and much needed.
We can help insurers regain the customer’s trust by giving the facts - insurers have struggled to make an underwriting profit for years.
This will be perceived as bad news for consumers, but I see it as a natural path to sustainability. Otherwise we will all be left with reduced choices in various classes of business.
Where there are fewer insurers, we are seeing more brokers setting up managing general agencies or their own syndicates. They are trying to find more routes to market when so many insurers are no longer around.
Thankfully, we are also seeing new insurers entering the market. Increasing premium levels are encouraging more competition and choice for brokers, which can only be a good thing.
Paul Muir is managing director of 1 Answer Network