Insurance is a vital aspect of our lives, helping to protect us financially from unforeseen events. In the UK, insurance rates may fluctuate from year to year due to a variety of factors. With supply chain disruption, labour shortages, lack of raw materials, and increasing food, fuel, and energy prices set to continue, the upward pressure on insurance premiums, primarily driven by claims inflation, is set to continue well into 2024.
Some of the factors behind the rising insurance premiums include:
Increasing Costs of Claims
One of the primary factors contributing to the rise in insurance premiums is the increase in claim costs. In recent years, there has been a significant increase in the number of insurance claims being made, particularly in areas such as motor insurance, where claims costs have risen sharply due to an increase in the number of road accidents and car theft and the rising cost of repairing modern cars with advanced technology.
Changes in Regulations
The UK government has been introducing a range of new regulations in recent years aimed at increasing transparency and accountability within the insurance sector, and insurers are required to meet these new requirements, which can be costly and time-consuming.
Inflation
Inflation can also impact insurance premiums. As the cost of goods and services increases, the cost of insurance claims also goes up. This can affect a range of insurance products, from property insurance to motor trade insurance. Insurance companies have to pay more to cover the costs of claims; therefore, they raise premiums to offset these costs.
So, what does this mean for policyholders?
Unfortunately, it means that many businesses will likely see an increase in their insurance costs; however, there are steps that policyholders can take to mitigate the impact of these rising premiums. It is important to review your policy regularly to ensure that you’re only paying for the cover you need.
Many businesses shop around for insurance policies, as different insurers may offer more competitive rates. However, at 1st Choice Insurance, we do it for you! Our skilled team works hard with a wide panel of insurers to find the best-suited policy for your business, as we understand the level of importance to ensure you are fully protected, at a competitive price. We will assess the coverage options available for your business and advise you which policies could be most beneficial.
For any more information on how we can help, contact our friendly team on 01743 770500 or fill in our quote form.
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Keep an eye out for our next blog on steps you can take to help mitigate the impact of rising insurance premiums.
