A month ago, experts from the corporate insurance industry sounded forecasts of a “drawdown” at the end of the year of 12-15% minimum. As of September 1, their expectations have changed markedly. Now the decline is estimated at an average of 3.5-4%, and some insurers are expected to even slightly increase by 1-3%.
Situation in the segment
De facto, the situation has shown that the insurance of corporate clients has practically not changed in terms of dynamics over the entire period of self-isolation and the crisis. The exception was expectedly the property and liability insurance of companies from the most affected areas:
- hotel business;
- restaurant business:
- gallery and exhibition, as well as concert activities.
For enterprises in the sphere of industry, public catering, trade and manufacturing, the demand for insurance of property of enterprises even grew by 8-10% (according to various estimates). And this, too, could have been foreseen, given that many industrial facilities were for some time empty and became the subject of interest of all kinds of vandals and kidnappers.
By June 2020, insurance companies from the top 20 of the Central Bank’s reliability rating noted a significant increase in activity in the insurance of commercial real estate precisely from such users. Having lost income from renting premises, the latter quickly came to the need to organize additional financial protection.
It should be noted that insurers have met such policyholders halfway, keeping rates at pre-crisis levels and expanding coverage. Although this was not the driver, according to experts. The current situation, in which the insurance of the property of legal entities, thanks to, and not despite the crisis, demonstrates positive progress, would not have been possible without new technologies.
How digital tools saved corporate insurance
By the way, they are the ones who are named by the policyholders themselves in the list of pleasant changes in service. What are we talking about:
- on the improvement of the mechanisms for registering business insurance against the risks of property loss online (before the start of the crisis, only a few provided such an opportunity, except for CA “GALAXY Insurance”, which from the very first day focused on comfortable contactless insurance);
- the emergence of technologies for remote verification of policyholders;
- on the development of systems for contactless settlement of insurance claims.
The latter is considered not only a “life buoy” for the entire business property insurance industry, but also a breakthrough in recent years. An online settlement request from policyholders has existed since 2010. And all this time, insurers have only announced imminent innovations. The crisis made its own changes: only those who were able to reorganize to the new contactless format remained afloat.
Business liability insurance online
In corporate liability insurance, however, the remote mode is not yet so developed. It can still be used as part of a comprehensive program. But to insure the company’s liability completely online is quite problematic. However, not for clients of CA “GALAXY insurance” . Here, you can still quickly compare prices from companies that have managed to maintain reliability in difficult times, and apply for cooperation remotely.
Prices in business risk insurance
With the positive dynamics of fees (albeit not as significant as we would like), it will still not work to keep business insurance prices at the same level. For a number of popular products, they will grow before the end of 2020. According to various estimates, this growth will range from 3-5% to 15%.
First of all, it is worth waiting for a rise in price:
- in the insurance of equipment and special equipment (due to the increased loss ratio, it is expected to grow by 15-18% by the end of the year);
- real estate insurance (for the most part, it concerns buildings of shopping centers and warehouses, which have had the main load this year);
- cargo insurance (not only sea, which was reported back in January, but also road transport) and liability for cargo transportation.