UK P&C Insurance: A Study into the Impact of the Recession on Commercial Insurance Risks

By 23rd May 2021 May 23rd, 2022 Insights, Insurance Reliability


In this report, Citibank sets out a summary of the key findings from an in-depth study into the impact of the recession on the nature of the risks to which UK corporates are exposed.

This analysis has been conducted by Mactavish; The report is the product of extensive interviews with CFOs, risk managers and operational management across a wide spectrum of medium and large companies and insurance underwriters across four sectors — Manufacturing, Retail, Construction and Financial Services — that have been particularly affected by the downturn.

  • Key Conclusions
    The main conclusion of the Mactavish investigation is that the disruption and dislocation of the last 18 months, and the ensuing changes to business models, has significantly increased risks to which companies are exposed. Yet, at the same time, both companies and insurance companies are proceeding as they were before, and it is debatable whether the insurers are even aware of this systematic change in the risk landscape.
  • Implications for commercial policyholders
    The results of the investigation foretell that there is likely to be a pick-up in insurance claims across commercial lines, from business interruption to product and employers liability, none of which is being priced for given the inherently backward-looking focus of the insurance industry. The fact that claims have not picked-up yet is of limited comfort given the long-duration nature of the exposures and the fact that the pace of change has accelerated and is still ongoing.

Get the full report here.