The insurance team at Procurement Australasia were recently approached by a predominantly social housing not-for-profit organisation who had just received their renewal terms via their insurance broker for the 30 April renewal.
Without warning, they were faced with a 100% increase in premiums with the insurers citing the global natural catastrophe losses that had occurred over the last 18 months or so and the recent COVID-19 pandemic as the reason for the increase.
All of the major global insurers have flagged that losses will occur as a result of the pandemic but they cannot provide details of how much and where these claims will come from in terms of which policy classes.
As a result, they are reviewing their book of business and looking to impose premium increases, cover restrictions and reduced capacity for renewals due this year and beyond.
In the case of the not-for-profit we were approached by, we managed to get an extension of cover during which time various insurer and cover options will be provided to reduce the original increases requested.
Our message is simple – allow time to review your covers, program structure and costs to avoid being backed into a corner a few days out from renewal.
Blog Submission: Peter Sellwood
PALTD InsureRight – Insurance & Risk Management
Contact us today to speak to our insurance specialists for more information.