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Take Action Now To Avoid Rate Increases

Feb7

The recent Government austerity measures are affecting us all. Several of the cutbacks announced in the recent Comprehensive Spending Review will impact on property insurance policyholders. The Governments decision to cut flood protection investment by 25% over the next few years, for example, is a major worry for insurance companies and underwriters. The government-Insurer statement of principles agreement, under which the insurance industry is currently offering flood cover as part of standard property insurance, ends in 2013. The debate about how to deal with the issue after this date has been intensified by the flood protection reductions. The British Insurance Brokers Association (BIBA), of which Higos is an active member, has set up a think tank of brokers and underwriters to develop bespoke products for properties in at risk areas. The only other solutions on the table are pooled funds - similar to current terrorism cover - or further regulation requiring insurers to provide cover in high flood risk areas. The costs associated with the latter options cannot fail to have a substantial upward impact on rates and, whilst any solutions reached by the think tank cannot rule out rate increases, it will avoid having to cover the cost of expensive regulation. Whatever the outcome, Higos feel it is imperative all commercial and personal property insurance policyholders affected by floods are insured via a broker who is working on their behalf, to ensure the most equitable solution. The market for flood cover will change rapidly over the next few years and Higos is committed to ensuring that all clients receive the best advice and cover available in the marketplace. If your business or home is in area which has been affected by recent or historic flooding or you reside in an area reclaimed from a flood plain - we would advise you to review your insurance arrangements at your next renewal date. Being insured with the right Insurer before the 2013 deadline will make a substantial difference - in terms of both premium and cover - if your current insurer prices themselves out of the market, or pulls out altogether.

Posted by: Higos Insurance Services Ltd