Follow on Google News News By Tag Industry News News By Place Country(s) Industry News
Follow on Google News | Honan's predictions of GI year of challenges; especially for construction affirmedBy: Honan Insurance Group Commenting further, Andrew Fluitsma said Property with EPS construction or risks within the Recycling & Waste Management industry remain hard to place with a lack of local underwriting appetite and capacity. "This has forced a return to mature underwriting markets such as London in order to obtain capacity – albeit at reduced levels and significant increase in pricing coupled with reduced cover. In some cases, businesses have elected to self-insure their risks either partially or completely as a result of these factors". "Whilst pricing corrections continue to be widely applied, construction- From a coverage perspective, insurers are re-engineering their portfolios and applying exclusionary language around cladding and Aluminum Composite Material exposures. This follows the fatal Grenfell Tower and most recently, a Victorian court case, post-Lacrosse Tower fire. In the case of the Lacrosse Tower fire, courts identified the liability of consultants across the building chain, including building surveyors, architects and fire engineers for failure to exercise reasonable care. This is causing huge concern for the wave of industry PI renewals due in the second half of this year for the construction industry in all states. It won't be uncommon to see a doubling of premiums and a majority of insurers electing to exclude cladding related exposures in its entirety or offering a minor write-back for legal defence costs. For organisation in these industries, it is important to note that risks presented to underwriters at the last minute are being viewed in a poor light said Travis Wendt, Honan's Head of Broking & Carrier Management. "It is imperative that proposal forms are submitted well in advance of renewal dates, as this allows optimum time to negotiate the most favourable terms from the market". "There's also good news for businesses considered as 'vanilla' as they continue to attract competition from insurers allowing insureds to consider a wider level of buying options with little impact on pricing". "Organisations who take the right steps by presenting excellent claims histories and taking a proactive approach to risk improvement or risk management are in a very strong negotiating position, especially in limiting the insurers need or want for a pricing uplift". Travis Wendt also confirmed that Honan is pro-actively assisting clients to obtain the best outcome from a sometimes-unfavourable situation with five key learnings: 1. The need to 'sell' your risks. This involves time, energy and sometimes resources to strategically differentiate your business from others to assist insurers in maintaining a level of comfort, both in terms of operational experience and expertise but also in the specific types or projects you are involved in. 2. Timing is important. Underwriters will not positively receive risks which are presented late or close to expiry date. It is vital that proposal forms are submitted well in advance of renewal dates to ensure optimal time to negotiate the most favourable terms. 3. Quality of information/ 4. Manage claims carefully. With claims history playing an important role in your ability to sell risks, there needs to be a strategic approach to how claims are managed on your behalf. 5. The right advice will assist with the right outcome. Working with a broker that takes a holistic and creative view of your business will assist in generating a positive outcome. This needs to be anchored by a transparent and trusting relationship. Highlights of Honan's April 2019 Market Update Directors & Officers certain covers, for Liability (side 'C' shareholder class action protection for example) continues to provide purchasing challenges. Natural Events & Disasters in 2019 is causing further restrictions in coverage. Key events include: – Cyclones Penny and Trevor impacted Northern Queensland and Northern Territory – Heavy flooding in Townsville (deemed to be a catastrophe) – Bushfires in New South Wales, Victoria and Tasmania Professional Indemnity (i) For many Australian and international PI risks, London has been the traditional market, owing to various reasons: the capacity available, breadth of appetite, levels of coverage offered and pricing. However, in Quarter 1 of 2019, we saw capacity returning to local carriers. Professional Indemnity (ii) As observed in other distressed segments, insurers are willing to walk away from unprofitable or underpriced business. It is no longer a buyer's market. Given the lack of pressure to grow existing portfolios, new or existing insurers are less inclined to offer the same coverage, limit or premium as provided in previous years. This can be navigated by commencing the renewal process early, having a robust strategy and strong market engagement. Notes to the Editor: Please contact Honan PR Consultant Joe Perri to arrange an interview with Andrew Fluitsma, CEO Australia & New Zealand or Travis Wendt, Head of Broking & Carrier Management Issued by Honan Insurance Group www.honan.com.au Media Enquiries: Mr. Joe Perri, Joe Perri & Associates Pty Ltd Tel: +61 3 9324 0362 Mob: +61 412 112 545 Email: End
Account Email Address Account Phone Number Disclaimer Report Abuse
|
|