Business Premiums: What's in store for 2022
Small business owners have been well and truly tested in the past couple of years. Due to price surges for critical and sometimes mandatory insurance cover, many have had to adjust to skyrocketing costs - in what has already been a particularly challenging time.
The pandemic has impacted us all in some way. Today, we are feeling the effects it has inevitably had on economic conditions, workplace challenges and inflation.
According to recent data from KPMG, in the 12 months to 30 September 2021, GWP has increased by 12.1% across personal and commercial classes of business. In particular, Commercial Property and Professional Indemnity has seen premium growth rates of 16.5% and 29.8% respectively.
Other lines of business including Travel Insurance continues to have significant drops in written premiums in recent quarters, most likely due to the impacts of COVID-19 on domestic and international travel.
But looking at the new year, what is in store for the local insurance market in 2022? After a difficult few years, and a now more volatile climate and risk landscape, industry leaders anticipate insurance price cycles to remain fairly high but with premium increases slowing down slightly. This is good news for SMEs who have stretched their insurance budgets to the limit.
As pressures ease, many businesses will have the ability to adjust their insurance, including risks considered hard to place. For low-risk businesses, there is also the opportunity to get better deals on their insurance. For most, this will rely on them not having a significant loss history and also not being located in catastrophe-prone regions.
How Coverforce can help
High insurance costs can be daunting but you don't have to navigate them alone. Our team of experienced brokers are here to provide personalised risk advice and tailored, competitive insurance solutions that can help minimise your business risks. If you haven't already, get in contact with your local Coverforce Office today or call 1 3000 COVER.
The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.
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