Following on from our last market update, the ‘soft’ market cycle continues and is a welcome reprieve for policyholders who can continue to expect stable or reduced premium rates of between 5 to 10 per cent for this class of insurance.
Increased competition and new market entrants have improved both availability and overall capacity giving policyholders greater choice as well as better options and control over the placement of their risk.
Rating wise, Lloyd’s of London is not perhaps as competitive as the Australian market. Insurer rates are in free-fall or have flattened depending on the nature of business, industry, geographical footprint, turnover, claims frequency, number of employees and worker to worker contractor exposure. For some policyholders, better pricing and cover could be negotiated with incumbent insurers or available with alternate markets.
During a ‘soft market’ there are opportunities for a lower excess, pricing structures and a wider scope of cover from insurers. It is important, however, to consider the stage of the market cycle. To this end, our article on insurer loyalty and long term pricing stability provides guidance on benefitting from cost and coverage improvements.
Restrictions on cover and exclusions continue to be applied for molestation/sexual abuse and polyfluoroalkyl (PFAS). Businesses should actively continue to mitigate workplace injuries including OH&S/WHS breaches and, address PFAS exposures by implementing policies and procedures to minimise exposures and ensure compliance with relevant work health safety legislation.
Our Bellrock Advisors can guide you through coverage improvements and placement options. If you have any questions, please do not hesitate to reach out to a Bellrock Advisor to discuss.
Continue reading our full range of market updates:
- Insurance Market Overview
- Property
- Commercial General Liability
- Motor
- Contractors Plant & Equipment
- Strata
- Claims
- Workplace Risk
- Executive & Professional Risk
- Construction