For budgeting purposes all companies need to consider the following areas:
Sums insured will usually increase in line with inflation, especially for buildings cover, to ensure that you remain fully protected. At present these increases are usually around 10 – 12%.
Repair costs have increased by at least the same as inflation, and due to shortage of parts, usually by more than this. Motor insurance premiums will therefore continue to increase. One fleet insurer is applying a minimum increase of 10% even on claim-free risks due to these increases in repair costs.
Many commercial insurers have been increasing all premiums by 5 – 10% (in addition to index linking) each year for the past 2 – 3 years. Whilst the market is beginning to soften, we are still seeing some insurers apply across-the-board increases, which may continue for the rest of the year.