Softening market a relief for business insurance buyers
By John Prendergast
Market forces at play in the business property and casualty insurance category mean that some buyers can expect reduced costs and improved quality when the time comes to renew.
This contradicts predictions at the time of the Christchurch earthquakes, that cover would be more expensive and restrictive for many years. The reality is increased capacity from insurers seeking market share has led to a softening market for business insurance. But to access possible benefits, organisations will need to demonstrate a sound understanding of their risk profile and have an active risk management plan in place.
Property and casualty insurance is a category that includes business interruption, material damage and business continuity insurances. Business interruption is an area where medium to large businesses typically may spend up to 80% of their insurance dollars – anywhere between $200,000 and $3.5 million a year, depending on the organisation size and industry.