As a business insurance broker, your clients rely on you to provide them with the best advice in as far as business insurance goes. The reason is that today's business environment is uncertain, and businesses are exposed to all kinds of risks. Therefore, having access to the best advice regarding cover is a critical objective of the best performing businesses. For this reason, you must keep yourself updated with information, especially in areas that are currently affecting the industry. This article highlights current issues affecting the business insurance industry.
Community Trust and Confidence
Most trade insurance brokers believe that all customers need is a partner who complies with the legal and regulatory requirements of the industry. However, while compliance is vital in the provision of quality insurance service to clients, trade insurers need a social license from society to gain its trust and confidence. As such, trade insurers must deliver insurance products that offer good value to the client and address specific requirements. For instance, in 2016, the Federal Government issued a proposal that laid out, among other things, the obligations of insurers in designing and distributing trade insurance products. Since these recommendations are for the public's good, complying with them to the latter will endear your firm to the community, and they will give you the social license you need.
As the commercial insurance industry keeps changing, so are local and international regulations to address the current business environment. While this is a positive to the industry at large, trade insurers are finding it challenging to keep up with the frequency and complexity of regulatory changes. It is especially challenging to commercial insurers that have a global reach. The reason is that they not only have to contend with local regulatory, changes but also international commercial insurance regulatory reviews. Therefore, insurers have to come up with robust strategies to protect their clients' businesses moving forward.
While the growing construction industry promises to improve Australia's economy, commercial insurers have endured the most of the ripple effect. For instance, building failures are at an all-time high with record numbers of class actions, and event-based claims reported. Therefore, insurers have no option but to pay up, and that is affecting their accounts. For this reason, business insurers must choose carefully which property development firms to collaborate with. It can go a long way in ensuring service providers only insure businesses and premises that are built to standard.
For more information on trade insurance, contact an agency.