Entering into a ‘Hard Insurance Market’

The COVID-19 pandemic has no doubt affected businesses and the services received, especially within the insurance market. Alexander Bonhill, HML’s dedicated insurance broker (who are part of the HML Group of companies) are here to help and have been investigating the impact COVID-19 has had on the insurance market and what effect this will have on the services our customers receive.

As events unfold around the world, there are already strong signs which have shown that the market has already changed, which has seen insurers behaving differently towards brokers and their clients.

A tougher attitude to risk and pricing across the market has developed market-wide, which now sees us entering what insurance experts call a ‘Hard Market’ for UK Commercial business.

What do we mean by the term ‘Hard Market’? A ‘Hard Market’ means it has become a sellers’ market where, to put it simply, demand exceeds supply. This implies buyers do not necessarily receive as good a deal as before.

How has a Hard Market come about?

This is a result of:

  • Loss of money over the last few years
  • Economic uncertainty
  • Low investment returns
  • Concerns about a more risky future world

What actions have insurance companies taken?

  • Withdrawing completely or ceasing certain types of insurance cover
  • No longer offering cover in some parts of the country
  • No longer providing cover for certain trades or industries
  • Restricting the amount of cover
  • Significantly increasing premiums
  • Become much tougher in their interpretation of what is covered in a claim
  • Become more selective about those they will offer cover to
  • Become more restrictive with policy wordings, terms and conditions
  • Expecting customers to take more share of their risk with a higher amount deducted from any claims made

The Alexander Bonhill difference

How we can help

Experienced Broking Team

who take the time to understand your business so we can tell your story to underwriters, have the experience to steer you through the unique issues of a hard market, presenting your business to the right people, at the right insurers, to get you the best value for money

who have the technical expertise to get you the best contract available

In-House Claims Team

Sedgwick Loss adjusters who manage your claim from cradle to grave, overseen by Alexander Bonhill’s Claims Manager. This ensures that you get the best possible outcome as insurers get tough and more challenging – we are your personal experts

who will provide practical help in getting your property back to normal following an incident

Expert Risk Management Team 

who provide practical solutions to help you prevent unnecessary losses and accidents, understanding your business risks and how to present them in the best light to insurers

who can help you with disaster recovery planning

Strong Insurer Relationships 

across the London insurance market including Lloyds, with reputable and financially secure insurers built on years of experience and trust, which puts us in the best position to negotiate the most favourable terms for you

we know them and they know us!

We understand this can be neither logical nor fair but it is becoming common practice within a hard insurance market. Knowing the right people to talk to and the best way to present a customer’s case is now more important than ever. At Alexander Bonhill, we will spend quality time with our customers, identifying risks whilst ensuring they get the best outcome. We can help make sure our customers receive the best deal available for their business by offering a full package during these unsettling times.

Useful pages

HML’s Insurance service is an extension of our property management service and part of our essential service offering.

Alexander Bonhill, act as HML’s dedicated insurance brokers and are part of the HML Group of companies. If you would like to find out more about Alexander Bonhill and their comprehensive service, you can do this here.