Underwriting Survey Reveals Widespread Issue of Inadequate Insurance Coverage
In a recent survey conducted by Prestige Underwriting, UK insurance brokers have expressed mounting concerns about the risk of underinsurance for their customers. The details of the survey are still available for further information.
The aim of the survey was to understand the value Managing General Agents (MGAs) provide in navigating non-standard insurance, and it revealed some concerning trends. An overwhelming 90% of respondents rated MGAs as either "very valuable" or "somewhat valuable" in helping brokers.
One of the key findings of the survey is the increasing difficulty clients face maintaining adequate insurance cover due to rising premium levels. According to the survey, 84% of brokers reported that current premium costs are impacting clients' ability to maintain sufficient coverage. Furthermore, 92% of brokers believe more non-standard customers are underinsured as they cut insurance costs to manage budgets. This underinsurance trend has increased compared to the previous year’s survey, indicating a deepening and persistent problem.
Brokers observe that many clients buy less comprehensive policies or agree to pay a higher share of claims themselves to save money, thereby increasing underinsurance risk. Economic pressures and a softening non-standard market contribute to a disconnect between premium prices and policyholders’ strained budgets.
The survey highlights a need for more innovative, flexible insurance products tailored to these customers’ unique needs. Other research corroborates these findings, with estimates that 76% of UK properties may be underinsured, and commercial properties are also affected, with 88% underinsured on building values and 77% on plant and equipment.
Prestige Underwriting urges the insurance industry to improve solutions to address these challenges and bridge the protection gap. The survey also indicates a 79% increase in non-standard enquiries, suggesting a growing demand for such solutions.
Tim Baxter, the Business Development and Relationship Director at Prestige Underwriting, commented on the Non-Standard Survey, but no specific comments are provided in the paragraph. The survey aims to enhance service delivery in non-standard insurance, but no further details about the enhancement are provided.
For those interested in learning more about the Prestige Underwriting's broker survey, the details are still available for further information. The survey provides valuable insights into the current state of the non-standard insurance market and highlights the need for innovative, flexible solutions to address the growing concerns over underinsurance.
- The survey conducted by Prestige Underwriting reveals that a growing number of clients are underinsured due to financial constraints, necessitating more innovative and flexible insurance products customized to their unique needs.
- With 79% increase in non-standard enquiries, the insurance industry is urged to address the challenges escalating from underinsurance by improving solutions and bridging the protection gap.
