Biba manifesto 2023 - cost-of-living crisis in depth
The British Insurance Brokers' Association has focused in on the role brokers can play to help the UK tackle the current cost-of-living pressures, as it launched its 2023 manifesto.
Titled Managing Risk - Delivering Stability, the 2023 Biba manifesto was launched on 24 January at the Houses of Parliament, Westminster.
“Biba is concerned, given the cost-of-living crisis and high rates of inflation, that the financial resilience of both consumers and businesses will come under renewed pressure,” the manifesto reads.
A survey conducted by Biba of its members found a number of areas where this is already starting to bite, potentially leading to problematic areas of underinsurance.
Cyber insurance was one of the lines most impacted, with 40% of Biba members reporting clients who previously held cover had stopped insuring their cyber risk.
Biba cost-of-living crisis survey results
40% – Stand alone cyber insurance was one of the most affected areas with 40% of clients that previously held cover no longer insuring their cyber risks
42% – Private car and motorcycle insurance 42% of respondents said customers had removed an add-on cover
38% – Home buildings and contents insurance 38% advised they had removed add-ons including accidental damage, personal possessions and legal expenses while 9% are no longer insuring their home
43% – Premium finance 43% of respondents advised they were seeing a greater take up of premium finance instalment options
20% – Shop and office insurance 20% said customers had opted to reduce sums insured
22% – Tradesman insurance 22% of customers had opted to remove a section of cover while 15% had reduced limits of indemnity
23% – Property owners’ insurance 23% of customers had increased their excess in order to reduce their premiums
32% – Group PA and business travel 32% of respondents advised customers were no longer insuring this risk
The trade body commits in its manifesto to “continue to work with our members to do all we can to support them and their customers through these difficult times, searching for appropriate solutions” and to “continue to flag the critical issue of underinsurance and the need for regular valuations by promoting guides on these topics”.
Top risks
In October last year Biba member Aon conducted an executive risk survey of 800 C-suite and senior executives from companies with more than 500 employees in the UK, Europe and North America to garner feedback.
The survey found that executives are most worried about risks surrounding the economy, with inflation and a financial crisis topping the list of most-focused on risks.
Top 10: Executive Risk Survey
- Inflation
- A financial crisis
- Energy supply
- Cyber-attacks
- Supply chain disruptions
- Government policy or regulation change
- A workforce shortage
- A future pandemic
- Valuing and protecting intellectual property
- Climate change
Jane Kielty, head of commercial risk for Aon UK, and deputy chair of Biba said of the survey: “Our research showed an interesting pattern in terms of optimism – with CEOs across the pond being more positive about their operating environments than here in Europe.
“But one thing was clear, leaders who address and embrace risk head on feel better prepared to deal with the unexpected – from pandemics to recessions.
“Addressing risk is no longer a choice, it’s a question of survival and this is where brokers can provide invaluable advice and support to help customer organisations navigate the uncertainties they face.”
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