Insurance rates have been rising since late 2019 after a prolonged period of soft market conditions, with construction PI amongst the areas to suffer most. Now, with the impact of Covid-19 insurers are also nursing over $100bn of losses and an even greater hit to their reserves. As insurers withdraw capacity we are already seeing prices double on some lines and an increase in claims disputes. If there were any residual doubt before Covid-19, the hard market is now a stark reality.
According to CECA, 92% of UK contractors have already seen significant increases in PI premiums this year
All too often, brokers tell their clients there’s nothing they can do about this, or that ‘you’re luckier than some of my other clients’. This shouldn’t be an acceptable answer when you are doing all you can to protect your business through the most challenging of times. The technical price of risk has not doubled overnight, and every sector contains both good and bad risks. The good news is that there is another solution.
Mactavish has developed a unique model designed to deliver against policyholder needs, rather than simply passing on changes in market dynamics. We empower our clients to take control of their insurance programmes, reduce their costs and improve the quality of their cover.
Our recent Broker Conflicts Report demonstrated that some brokers derive up to 80% of their revenue from insurers and only 20% in direct fees from policyholders. Worse, their earnings may be linked to rates and premium volumes, meaning the less hard they try to broke your risk the more they stand to make.
We’re different. 100% of our revenue comes in direct and transparent client fees. So you can be sure that we represent your interests and no one else’s.
The figures speak for themselves. On recent projects we’ve been able to reduce premium costs by between 20% and 50% against initial broker estimates.
But that isn’t all. Our heritage is in legal reform and we remain true to our roots by driving for better coverage for all of our clients. In most cases we make over 30 amendments to policy wordings to better respond to our clients’ exposures – so you can be sure that you’ve not only paid a good price, but got a great product too.
We also manage claims disputes on behalf of policyholders of all sizes, with the hard market making disputes even more commonplace. So far, in 2020, we’ve helped clients manage claims with a total value in excess of £400m – with a unique proposition that explores every available route to fair, rapid resolution.
In many respects coming out of lockdown is one of the most commercially and operationally challenging aspects of the pandemic. Social distancing, evolving government guidance, changing business models and disrupted supply chains are just some of the difficulties faced by companies across the UK.
Insurance is often overlooked amidst all of this change, but it’s very easy to find that you’ve breached the terms of your policies or failed to disclose a material change that can leave you, for all intents and purposes, without cover in the event of a major claim.
The Mactavish Health Check is designed to help you get a grip on your risk transfer programme and provide actionable guidance on what you need to do now in order to protect your firm through Covid-19 – maximizing cash recovery and safeguarding your insurance protection.
In 2019 Mactavish was engaged by a UK-based construction company with a brief to manage costs while improving the quality and reliability of its cover.
The incumbent broker had told the client that its premiums would increase significantly at renewal and that they would have to move to a standard broker/insurer wording that would not take into account a large number of bespoke policy changes they had previously negotiated.
Mactavish ran a written lines tender creating head-to-head competition between two brokers. The result was a 33% premium saving against the incumbent brokers offer and acceptance of an expanded range of bespoke policy changes that left the client better protected. On one policy alone, the Mactavish policy was materially enhanced vs. the broker wording on 20 points of coverage and law.
A really positive experience and we have been very impressed with the level of service provided by Mactavish.
We appointed Mactavish to assist with a broker tender and improve our key policy wordings in respect of some of our main covers. Mactavish drafted and successfully implemented significant improvements to our insurance contracts. Overall it was a really positive experience and we have been very impressed with the level of service provided by Mactavish.
Mactavish helped enormously with the tender – reviewing and assessing the brokers and presenting the revised information to us in a clear usable format, suitable for my colleagues and I who have insurance responsibilities within the Bellway Group.
The Mactavish team were extremely knowledgeable and understood our requirements. They were quick with responses, good at the technical details and were heavily involved throughout the project and attended the key meetings during the tender process.
Overall, we would be very happy to recommend Mactavish for similar types of work which they carried out for Bellway.
How to contact us
We think policyholders deserve better outcomes from the insurance market.
Contact us via the form below, or the phone number and email address on our contacts page to see how we can help you take control of your risk transfer programme and protect your company.