2019 – Lloyd’s, Ogden, Brexit and liability insurance

Sep 25, 2019

2019 has been a year of unprecedented change and uncertainty in the UK generally. Liability insurance has been at the centre of a lot of this change with the ripples from the Lloyd’s business plan review still being felt and the uncertainty over Brexit being as prevalent as it was at the start of the year – with the UK still at a political impasse. Only today we see parliament being recalled following an historic ruling in the Supreme Court that the recent suspension was unlawful. All of this as we edge ever closer to October 31st, when we may or may not exit from the European Union.

As insurers work to continue to deliver a profit at a time of the lowest investment returns in living memory, rising claims costs and having to prepare for the unknown in terms of Brexit, we then see the impact of the Ogden discount rate further impacting the margins of our liability insurers. The higher the discount rate, the better for insurers and, in 2017, the then Justice Secretary, Liz Truss, cut the rate from 2% to -0.75%. Following a review, as part of a wider review on fraudulent whiplash claims, the rate has now been increased to -0.25% which is still substantially lower than the 2% it was at before. This will be extremely costly for liability insurers.

Brexit continues to throw up many more questions than it answers in relation to liability insurance. How do we navigate the matter of risks straddling the Irish border? What if my client has a branch in Europe? Can my client still accept contracts in Europe and how will his insurance respond? Can I arrange insurance for a client in the Republic of Ireland following a ‘no-deal’ Brexit? We are happy to take your questions on this matter and would also suggest that you stay close to BIBA and all that they are doing in this space. BIBA are committed to making sure that brokers are represented at all stages of the Brexit negotiations and all we can do at the moment is to understand our own business’ exposures and the potential ramifications of Brexit on those exposures, and then we watch and wait!

Yutree have been navigating all of these changes and this uncertainty and remain committed to open and honest communication along the way. Our BIBA scheme for liability insurance is very much open for business and we are keen to help brokers to place those quirky, unconventional and diverse businesses which pass across all of our desks each day.

Yutree have a flexible liability offering to help brokers to help their clients. We require clear, straightforward information about your clients’ backgrounds, businesses, experience (for start-ups), customers, products, services, processes, financials and risk management to be able to provide you with a quick quote.

As well as all the traditional businesses our there, we also help start-ups, tech firms, cottage industry risks and those operating in other new style economies. Some of the trades that we can consider include:

  • Manufacturers
  • Wholesalers
  • Online businesses
  • Artisan producers
  • Landowners
  • Property managers
  • Sports clubs
  • Community groups
  • Coach operators
  • Market stall holders
  • Social clubs
  • Retailers
  • Training providers

……..and everything in between

Give us a call on 01638 660651 or e-mail us at underwriting@yutree.com. Click here for a Liability Quote Form for Brokers if you would like to submit enquiries in this manner. We look forward to hearing from you.

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