BIBA warned businesses not to reduce cover without consulting a broker
British insurance brokers have reported a decline in commercial lines customers as businesses reduce their levels of cover in the economic downturn.
The British Insurance Brokers Association (BIBA) warned customers that reducing insurance protection without advice from a broker could have devastating consequences.
More than half of BIBA brokers surveyed have seen commercial customers reduce their level of insurance protection in the economic downturn.
Of the brokers that have seen a reduction in levels of commercial cover 45% have seen clients reduce cover or take on more risk themselves.
When asked which classes of insurance are most affected, 20% said that commercial combined is one of the most affected commercial classes, 20% said it was commercial liability, and 14% said that all commercial classes are affected.
Eric Galbraith, BIBA Chief Executive, said: ’The economic downturn generates an increased focus on cost and brokers should demonstrate the value that they add to clients.’