The rising risk of underinsurance

With UK inflation painfully high, companies need urgent help to avoid the growing dangers of underinsurance. Commercial lines insurance brokers will play a critical role in helping them get the right cover and protecting them against the deepening economic storm.

Underinsurance means not having enough protection to cover potential losses in the event of a claim, which could have catastrophic effects for a company if they suffered a disastrous event, such as their premises burning down.

The problem of underinsurance has been growing for over a decade as the costs impacting claims have increased faster than headline inflation. The gap between a business’s sum insured and the cost to fulfil a large claim has widened in the last two years, with materials and labour costs soaring above the consumer price index (CPI).

This content focuses on the rising risk of underinsurance, why now is the time for the industry to tackle this issue and how brokers can safeguard customers.

Topics covered:
• Why underinsurance is a burning issue in the broker market.
• A dramatic gap in insurance cover.
• A hard insurance market and challenging times.
• Building trusted adviser status.
• Underinsurance threatens survival for at least half a million companies.
• Using a data-led approach to address underinsurance.
• Why insurance brokers have a unique opportunity to protect companies.