Has Your Insurance Premium Increased?
19th May 2021
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INSURANCE RATES HAVE BEEN INCREASING AGAIN FOR A NUMBER OF REASONS.

This includes the Covid pandemic and the increased costs for insurers in having staff working from home.

Apart from the pandemic, there are many reasons that your insurance premium may have increased substantially. It is important to make sure you are aware of these reasons so that you can minimise these increases wherever possible. Working with a great broker will ensure you get the best possible deal without falling prey to some of the common pitfalls:

  • COMPLACENT BROKER – It is all too easy for a broker to renew your cover with the existing insurer if the premium 'looks about right.' A great broker should be sourcing you the best possible deal instead of just renewing because it's easier. At GBS Insurance Services, we always explore all available insurers for our clients to ensure the very best cover and price.

  • BROKER COMMISSION – Is your broker driven by the commission they earn? Different Insurers offer brokers different levels of commission! At GBS Insurance Services, our goal is to obtain the best price possible for our clients – the commission we earn is secondary to the needs of our clients.

  • PREMIUM RATE INCREASES - Certain insurers have (over the last 18+ months) either withdrawn from certain classes of business or substantially increased premiums. For example, the Hospitality and Care Sectors have both seen huge price hikes, often with the clients' existing insurer being prepared to offer them renewal terms. In relation to Professional Indemnity Insurance, almost all types of professional firms have seen huge 50% to 300% increases (even Insurance Brokers).

  • POOR CLAIMS EXPERIENCE – You may be a Landlord or Letting Agent with a property or portfolio that has suffered from a multitude of Escape of Water Claims. Here there are Risk Management Techniques that can be instigated or installed to substantially improve the number and size of losses. Or you may be a Fleet Manager where there is a high incidence of claims on your vehicle fleet – Again a proactive approach to risk management coupled with a knowledgeable partner broker will greatly assist with the insurance premium that your company pays.

  • ADMIN FEES – Many brokers like to charge excessive admin fees. For a small policy where the premium is only a few hundred pounds then for example an Admin Fee of £100 would be deemed excessive and is not really in the interests of treating customers fairly.

  • IS YOUR BROKER CREATIVE ENOUGH? – If you are paying a substantial premium, has your broker spoken to you about a Long Term Agreement saving? Have they suggested a Low Claims Rebate option? Or asked you to complete an up to date Risk Management Questionnaire? Would your broker be prepared to disclose the commission they earn? Would they take a fee instead of commission to save the Insurance Premium Tax (IPT) on this part of the premium too? It is so important to make sure you are working with an insurer you trust to ensure you get the best deal.

 

Even in the current challenging times, our Team at GBS Insurance Services continue to constantly save our clients considerable amounts of money on their insurance premiums. These savings are also often on the price that the client was paying before the start of the pandemic, before many insurers started to impose the substantial premium increases that clients have now seen.

Our Goal at GBS is to always obtain the very best deal for our clients, and if that means a little less commission for the broker, then that's fine with us.

We also offer a 'FREE INSURANCE REVIEW' to all our current and prospective clients to make sure that they always have the right cover at the right price.

Get in touch with our team now to experience what sets GBS Insurance Services apart from their competition!

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About the Author

Peter M

Member since: 7th December 2020

GBS Insurance Services is a premier commercial broker based in the South East of England. We have a varied client base including manufacturing, online retailers, tea houses, charities and landlords....

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