The insurance industry has become increasingly “risk selective” over recent years as the market hardens in response to reduced profitability driven by an upswing in the quantum and frequency of claims, particularly natural catastrophe losses along with ongoing traditional fire losses resulting from the past use of flammable construction and insulation materials.
Insurers continue to write “good quality risks” with moderate rate increases, however “poor quality risks” are likely to be subject to significant rate increases, reduction in cover and increases in sub-limits. In certain instances, insurers may have no appetite to underwrite poor quality risks, leaving some with-out insurance and with no alternative but to self-insure.
Property insurers consider a good quality risk to be one that:
Login to the Members only content to read the guidance material.
Read other resources on Property here
To subscribe to Unimutual updates, please send your details to email@example.com or follow us on LinkedIn for notifications.