Record Profits in Insurance Industry Spark Public Concern Over Rising Premiums

Actuarial firm Taylor Fry, in its annual Radar report, highlighted that while the industry's profitability has improved, this escalation may intensify scrutiny on how insurers set their premiums. Consumers, already facing affordability challenges, are questioning the justification behind increasing insurance costs.

Scott Duncan, Principal at Taylor Fry, emphasised the importance of viewing insurance profitability over a longer-term horizon. He noted that the industry has faced challenging years recently, and the current favourable conditions may not persist. Therefore, it's crucial for insurers to balance profitability with fair pricing to maintain public trust.

For restaurant and café owners, this development underscores the need to stay informed about industry trends and advocate for transparent pricing. Engaging with industry bodies and staying abreast of regulatory changes can help ensure that your business is not disproportionately affected by premium increases.

Additionally, consider the following steps to manage insurance costs effectively:

• Policy Review: Regularly review your insurance policies to ensure they align with your current business operations and risk profile. This can help identify areas where coverage may be adjusted to optimise costs.
• Risk Mitigation: Implement risk management strategies to reduce the likelihood of claims. This can include staff training, equipment maintenance, and adherence to safety protocols, which may lead to lower premiums.
• Broker Consultation: Work with an experienced insurance broker who understands the hospitality industry. They can provide insights into market trends and negotiate better terms on your behalf.

By proactively managing your insurance needs and staying informed about industry developments, you can better navigate the challenges posed by rising premiums and ensure your business remains adequately protected.