Insurance professionals predict a bad Brexit could lead to more claims and higher premiums
Some 66% of UK insurance professionals believe a bad Brexit will lead to rising commercial insurance premiums as a result of more claims being made.
The research, conducted by Premium Credit, the UK’s leading premium finance company, reveals that nearly one in five insurance professionals have already seen an increase from commercial clients asking for advice on potential claims relating to Brexit.
A bad Brexit could potentially negatively impact Sterling, which would make overseas claims for UK insurers in relation to travel insurance for example, more expensive. It could also have a negative impact on the UK stock market which could affect insurers’ investment returns.
Some 35% of insurance professionals say that if both the value of Sterling and the investments of insurers fall, it’s ‘very likely’ that they would lead to UK insurance premiums rising, and a further 39% think it’s ‘quite likely’ this would happen.
A bad Brexit could also lead to more UK companies going bust, and Premium Credit’s research found that 23% of insurance professionals believe strongly that this would lead to an increase in the cost of trade credit insurance, which protects organisations against their risk of their clients going bust. More than two fifths (45%) believe this would ‘probably’ happen.
Adam Morghem, Strategy and Marketing Director at Premium Credit said: “Everyone is hoping against a bad Brexit as the implications of this could be far and wide.
“Our findings reveal that insurance professionals feel that it could have a very negative impact on claims and see premiums rise, putting even more pressure on many companies, already strained by the potential loss of European suppliers and markets.”
Premium Credit is the market leader in the UK and Ireland and the only premium finance provider accredited by BIBA.
Premium Credit is the leading provider of premium finance in the UK and Ireland, and the only company endorsed by the British Insurance Brokers’ Association.
Premium Credit is authorised and regulated by the Financial Conduct Authority, and work with over 3,000 producers of all sizes. They serve over 2.2 million customers, process 26 million direct debits and receive advances of £3.4 billion.
For 30 years, Premium Credit has led the market through thought leadership, innovation and technology and have helped their partners offer finance compliantly to their customer through face-to-face, telephony and online channels.
Premium Credit continue to invest to ensure we provide a quality service and support that helps companies grow their business and commission. From the delivery of seamless customer journey, which includes real time decisioning for financing and 24/7 account servicing, to consultation that improves the offer of finance to customers, Premium Credit are committed to growing the premium finance market.
Their Specialist Lending division also provides finance to pay other annual costs, such as professional fees, membership subscriptions, commercial service charges, golf clubs and school fees.
- 12 Aug 2019
- 1 Aug 2019
- 24 Jul 2019
- 11 Jul 2019
- 8 Jul 2019
- 19 Jun 2019
- 6 Jun 2019
- 29 May 2019
- 20 May 2019
- 16 May 2019