“As many as 50% of all UK businesses are underinsured” reports Aviva. How inflation is affecting true insured values and resulting underinsurance.

(Article from Insurance Age - December 2022).

“A potential recession and cyber and ESG concerns top the list of key risk trends for directors and officers in 2023, according to a new survey by Allianz Global Corporate & Specialty (AGCS).”

(Insurance Business UK - December 2022)

Chris McMurray, cyber lead at Travelers Europe addresses evolving Cyber threats “that are presenting pressing challenges to UK businesses” and what they need to do to keep up and protect themselves.

(Article from Insurance Business UK - October 2022)

Recent (October 2022) climate change protesters targeted international precious works of art on display, including Vincent van Gogh’s “Sunflowers”, calling for art collectors to review adequate insurance cover against unforeseen risk.

(Article from Insurance Times - October 2022)

UK subsidence claims increased by 140% in September 2022 (source: Allianz Commercial) due to adverse soil conditions brought on by a hot/dry summer and drainage leaks. Subsidence is a complex risk resulting in lengthy claim resolutions.

(Article from Insurance Business UK - October 2022)

"The regulator has warned that customers’ mental and physical health may suffer when struggling to pay bills

The FCA has written to insurance industry chief executives to warn that they should ensure customers are protected from unecessary costs associated with products, add-ons or unfair penalities as financial pressures mount.

Where poor practice is found, the FCA has stated it will quickly intervene to protect customers from harm.

The regulator has made this move out of concern that underinsurance may become an issue as customers seek savings by cutting back on cover."

(Insurance Times - September 2022)

"The UK has been experiencing the hottest summer since 1976 – the fifth driest on record – leading to the highest levels of subsidence claims over the last 20 years. Fortunately, weather risk management provider EuroTempest has found that the surge in subsidence claims will likely revert to its normal levels for the rest of this year.

The high rainfall levels recorded in mid-August, along with shorter daylight and lower temperatures, have been easing dry ground conditions that often result in subsidence. However, EuroTempest noted that the longer-term forecasts don’t necessarily promise more rainfall in the later months."

(Insurance Business UK - September 2022)

"Brokers are therefore vital for providing advice to protect businesses through economic headwinds

Small to medium-sized enterprises (SMEs) are being left open to significant levels of uninsured risk due to the UK’s challenging economic environment, Aviva has warned."

“SMEs will obviously be paying close attention to their expenditure as a result. But cutting corners on insurance leaves them exposed to considerable risk – we estimate that 50% of UK businesses are underinsured to some degree and 45% of policies with buildings have at least one premises suspected to be underinsured by 20%.”

(Insurance Times - September 2022)

"The market is developing ‘realistic disaster scenarios’ to prepare for potential threats, added chief of markets

Lloyd’s chief of markets Patrick Tiernan has confirmed initial approval has been received for the market’s first standalone cyber syndicate.

During a quarterly message to the market delivered last week (22 September 2022), Tiernan said the syndicate had received initial approval and that Lloyd’s was determined to play a role in driving maturity in cyber classes."

(Insurance Times - September 2022)

"The Financial Conduct Authority has delivered its recommendations and potential remedies to reform the multi-occupancy buildings insurance market including a cross industry pool and lowering commissions.

In January Michael Gove, then the Secretary of State for Levelling Up, Housing and Communities, called on the FCA to review the insurance market for multiple-occupancy residential buildings."

(Insurance Age - September 2022)

"The limited coverage is characterised by low coverage limits, long waiting periods, narrow coverage triggers, significant deductibles and long claims processes

There is a misconception that the scope of cyber errors and omissions (E&O) insurance covers all cloud downtime losses, according to the results of the latest survey from Parametrix, published last week (8 September 2022)."

(Insurance Times - September 2022)

"We’re living through a difficult period in our country’s economic history. The cost-of-living crisis comes at a time when we’re still dealing with the lasting effects of Covid-19, Brexit and the ongoing war in Ukraine.

At the same time, we’re seeing inflation rising, increasing fuel and energy prices, and this is having a significant impact across everything including building materials and supply chain issues. All of this is impacting the prices we pay and how long it takes for goods and materials to get to where they’re needed. So, what does this all mean for insurance?"

(Insurance Age - September 2022)

"Headlines across the national press have warned of the prospect of an avalanche of subsidence claims in the wake of the prolonged hot and dry weather seen by the UK in recent weeks. But are these concerns translating into claims figures?"

(Insurance Business UK - September 2022)

"The representative body hopes that its new clause will provide underwriters with ‘greater confidence to offer effective insurance solutions’ to firms that are working to remove dangerous cladding from high-rise buildings.

The International Underwriting Association (IUA) has published a new model insurance clause that covers fire safety risks."

(Insurance Times - September 2022)

"There appears to be a noticeable lack of engagement from UK business leadership when it comes to cybersecurity matters, a new report from the Department for Digital, Culture, Media & Sport (DCMS) has found."

(Insurance Business UK - August 2022)

"Research by Zurich has revealed that two-fifths of London businesses are at risk of being hit by flash floods as heavy rainfall is predicted to hit the capital. Parts of London are already experiencing flash flooding after this week’s thunderstorms, with more rainfall forecast in the coming days and weeks. Zurich’s research has shown that flooding from torrential rain threatens 42% of the capital’s 301,000 commercial buildings, while nearly half of London’s 33,200 basements in commercial use are at risk of flooding.”

(Insurance Age - August 2022)

"Insurers should brace for weather-related claims as temperatures soar and drought is officially declared across parts of England

UK insurers should brace themselves for a rise in home insurance claims as scorching weather and drought conditions create the perfect conditions for wildfires to spread in the UK.”

(Insurance Times - August 2022)

"Laser hair removal only accounted for 7% of claims but involved the most serious injuries

Eyebrow microblading and tinting blunders account for 37% of salon injury-related insurance claims, according to data published by Zurich today (8 August 2022).”

(Insurance Times - August 2022)

"A rising number of UK homes now face a greater risk of flooding as climate change continues to trigger an increase in catastrophic weather occurrences – a trend that experts expect to carry on in the future.

In England alone, there are more than 5.2 million properties exposed to flood risk, according to data from the Environment Agency (EA). The non-departmental public body predicts the figure to rise in the next few years due to increasingly volatile weather.”

(Insurance Business UK - July 2022)

"Insurance claims from companies have become more severe over the past five years due to factors such as higher property and asset values, more complex supply chains and the growing concentration of exposures in one location, such as in natural catastrophe-prone areas,” said Thomas Sepp, chief claims officer and board member at AGCS. “The future does not look bright anytime soon.”

Read the full article from Insurance Business UK here on trending commercial risks that may impact on business interruption and damage replacement costs.

(Insurance Business UK - July 2022)