Gov must bring insurance costs to 'affordable' level

By Rebecca Weller

- Last updated on GMT

Perfect storm: insurance costs escalate as many operators felt let down by insurance companies during pandemic (Credit: Getty/andresr)
Perfect storm: insurance costs escalate as many operators felt let down by insurance companies during pandemic (Credit: Getty/andresr)

Related tags NTIA Legislation Finance

The Night-Time Industries Association (NTIA) has partnered with NDML insurance brokers to urge the Government to address escalating insurance premium costs within the sector.

With some operators having seen insurance cost increases of more than 100%, the partnership has aimed to lobby for a renewed Government Crisis RE Scheme, tasked with building confidence back with insurers and reduce premiums.   

NTIA CEO Michael Kill said: “Our industry has paid billions of pounds in insurance premiums to protect their businesses for many years, but during the pandemic many felt they had been let down by insurers in their moment of crisis.

Not sustainable 

“We are now facing a cost inflation crisis, from the effects of overseas conflict and domestic policy decisions which have seen insurance costs in some cases double.

“This is not sustainable; insurance will require creative intervention from the Government to grow confidence in the leisure market and reduce premium costs to an affordable level.”

According to the NTIA and NDML, a ‘hard-market’, when insurers reduce capacity for turnover and in turn drive up premiums, has meant it could be more difficult to get certain types of cover, having a significant impact on premiums that aren’t properly handled and putting more strain on businesses struggling with soaring costs​.

However, the trade body and insurance broker claimed these challenges could be mitigated against with proper preparation and support to enable businesses to plan for and keep on top of rising premiums.

Although, as with many of the financial challenges ​facing businesses, this will become increasingly challenging unless action is taken by the government to protect businesses in our industry.  

Perfect storm 

NDML managing director Simon Mabb said: “We are seeing brokers that maybe have a handful of clients in the leisure sector struggle ​so much, to get cover for their leisure clients they are coming to NDML as the specialist leisure broker and asking us to place the business for them. 

“It is the perfect storm right now with costs everywhere increasing at a point where many in the sector are just trying to get back on their feet. 

“We are working hard to find new markets and better deals for our clients but the market is very limited. 

“If you are concerned about this issue you need to contact us as early as possible so your business is represented to insurers in the best possible light for the best terms.  As they say you can only make a first impression once and this is really important right now.”

Related topics Professional Services & Utilities

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