In a recent article published on ABC News, it was suggested that insurance premiums were set to rise as a result of the global economic slowdown.
Mr. Parameswaran, an analyst, said that “insurers who specialised in professional indemnity, workers’ compensation and commercial property would bear the brunt of those increases.”
In the opinion of BizCover (Online Professional Indemnity Insurance Broker), premiums were likely to remain stable if the market provided transparency and the degree of competition between insurers remains high. BizCover’s operating model facilitates current market conditions. Business professionals are able to compare Professional Indemnity insurance policies online, from a range of insurers by answering a couple of brief questions online. Through pricing and coverage transparency, insurers will be motivated to constantly revise prices and terms, which would in turn, provide higher quality and cost-effective policies than their competitors.
With the mass redundancies that have been witnessed, and are continuing to occur, many employees are more inclined to become employers, or open up their own businesses. The start-up costs for many of these start-ups include business insurance including Public Liability and Professional Indemnity Insurance (the latter may be particularly important given the current economic environment and risk of litigation). For this reason, the business insurance market, particularly in the provision of policies to SMEs, may not, as the article suggests, contract.
