La Niña aftermath set to trigger major changes
Due to the severity of the La Nina season and the impact it has had on both homeowners and business owners, the cost of insurance in Australia has risen at rates above CPI. While each sector is different, current market indicators suggest premiums are unlikely to stabilise any time soon. Average annual premium increases are expected to be 8% – 12%.
Time to review and refocus.
After battling the COVID pandemic and weathering the worst of La Nina – by means of good management or good luck (or a combination of the two!) – many SMEs were able to absorb the premium increases. However, this is not the case for all, rising premiums are placing increasing pressure on the bottom line of thousands of Australian businesses.
If yours is one, now is the time to review your business risks, risk management procedures and insurance options.
Over the years, there has been a growing number of client enquiries interested in exploring risk management and mitigation strategies. With insurance costs continuing to rise will into 2023, there will be a need for businesses to seek cost-effective alternatives to their traditional insurance programs.
Up-front action, long-term savings.
Great news – a greater focus on risk management and mitigation processes can bring you measurable benefits. If structured and implemented effectively, risk management will reduce the exposure to a major loss event impacting your business, while also alleviating or reducing your annual insurance premium.
La Nina is here to stay – Let’s talk!
The Bureau of Meteorology has declared a third consecutive season of La Nina.
Are you a business owner? What does this mean for you? A lot of businesses will be impacted by weather events from property damage and business interruption to machinery breakdown. Therefore, it is critical for every Australian business to have robust risk management strategies in place including comprehensive insurance policy/policies.
Here at LA Insurance, we help our clients tailor risk management strategies, and we are here to help you too. Want to know more? Get in touch with us today!