In a world where unexpected disasters seem to lurk around every corner, understanding the ins and outs of insurance has never been more critical. With insurance premiums skyrocketing due to rising claims, natural disasters, and shifting regulations, it can be difficult to navigate this often-complex landscape. According to Katie Brandon, Broking Manager at Aviso Broking there is a whirlwind of factors driving insurance premiums, but we can reveal some of the secrets to getting the best out of insurance without sacrificing peace of mind!
What Drives Insurance Premiums Up?
Insurance premiums are influenced by a myriad of factors, each contributing to the overall cost. Here’s a breakdown of some of the primary drivers:
Risk Levels: Insurance costs more in areas prone to natural disasters like floods, bushfires, and cyclones because the chance of claims is higher.
Market Conditions: Right now, the global insurance market is tight. There’s less money available, and it’s harder for insurers to get reinsurance (their own kind of insurance). This makes them cautious and drives up prices.
Economic Factors: Things like rising costs for building materials and labour shortages also push premiums up.
How Can We Keep Insurance Costs Down?
The best way to keep insurance affordable is by reducing risk. Here are some strategies:
- Invest in Better Risk Management: Insurance premiums reflect the risk your business poses to insurers. By adopting more robust risk management practices, you can lower the likelihood of making claims, potentially reducing your premiums. This can include tightening safety protocols, investing in employee training, and enhancing security measures at your premises.
- Shop Around for Value: The insurance market is highly competitive, and exploring different options can lead to cost savings. Comparing policies and negotiating for the best rates can be time-consuming, but working with a broker can simplify this process. Brokers are connected with multiple providers and can help secure competitive premiums on your behalf.
- Review Excesses and Limits: Increasing your policy excess—the amount you agree to pay when making a claim—can reduce your premiums. This strategy works well if you’re able to cover the higher out-of-pocket costs in the event of a claim. Additionally, reviewing your policy limits to ensure they align with your risk profile without being excessive can also help manage costs.
- Maintain a Good Claims History: Frequent or significant claims can raise premiums. Prioritise workplace safety and proactive risk management to maintain a clean claims history, potentially lowering costs over time.
- Secure the Best Coverage: Regularly review your insurance to ensure it remains a good value. Brokers can assist in evaluating your needs and finding policies that fit your risk profile and budget.
How Aviso Broking Can Help You
At Aviso Broking, we get that insurance can be confusing and expensive. Here’s how we can help:
Personalised Risk Assessments: We’ll check out your situation and suggest ways to reduce risk, which can help lower your premiums.
Expert Advice: Our experienced brokers keep up with market trends and can guide you to the best options for your needs.
Ongoing Support: We’re here for you as the market changes, providing support and advocacy whenever you need it.
Contact us today to see how Aviso Broking can help.
Disclaimer:
The information provided in this article is of a general nature only and has been prepared without considering your individual objectives, financial situation or needs.
