There is no arguing we are seeing a trend of insurance premiums rising in the first season of this year. We’re witnessing shifts that are impacting insurance premiums. From increased road activity post-COVID to rising inflation affecting material costs, several factors are contributing to recent premium hikes. Insurers are diligently reviewing rates to ensure they remain in line with market trends and the evolving landscape.
So, why are premiums surging nationally?
Inflationary Pressures- Inflation isn’t just affecting everyday expenses; it’s also impacting the cost of materials used in repairs and replacements. From auto parts to building materials for homes and businesses, rising prices are driving up the overall cost of insurance claims.
Market Adjustments- Insurance rates are dynamic, responding to shifts in the market and industry trends. With recent global events impacting various sectors, insurers are reassessing their pricing strategies to reflect these changes. From economic fluctuations to regulatory updates, market adjustments play a significant role in shaping premium rates.
Worldwide Weather Events- Recent years have seen an increase in extreme weather events worldwide, from hurricanes and wildfires to floods and storms. These catastrophic events not only result in significant insurance claims but also stress the importance of a comprehensive policy. As insurers factor in the potential risks associated with climate-related incidents, premium rates may adjust accordingly to ensure adequate protection for policyholders. Significant weather events worldwide have also driven up Reinsurance costs, therefore impacting insurance pricing here in the UK.
More People on the Roads- Post COVID, more individuals are returning to work and travel which has lead to a surge in road activity. This increase in traffic not only heightens the risk of accidents but also leads to more insurance claims.
Is there a solution?
Fret not! At JMP, we’re committed to helping you navigate through these changes and find ways to mitigate the impact on your premiums.
As experienced insurance brokers, although we cannot reverse the surge in premiums for our clients completely, we do specialise in evaluating your coverage needs to find the most competitive rates in the market. By leveraging our industry expertise and vast network of insurance providers, we work tirelessly to ensure you’re getting the best possible coverage at the most affordable price.
Don’t let the recent premium increases rain on your parade! Contact us for a comprehensive policy review and let us help you adapt your coverage to these evolving times.