How to MANAGE RISK Making the most of your upcoming renewal Barbara Cestaro MICM Client Manager, Credit Solutions
Barbara Cestaro MICM
Dan Chapman MICM
Dan Chapman MICM Director, Credit Solutions At the start of the COVID-19 pandemic insurers
To help your organisation get the best possible
were quick to perceive significant risk (with
outcome from your upcoming renewal, some key
flashbacks to 2008), and responded with a
considerations are outlined below.
contraction in risk appetite and increased policy premiums.
Estimated Turnover
As we now know, 2020 and 2021 didn’t see the
Insurable turnover is one of the key pieces of
cascade of insolvencies that many had predicted.
information in the renewal form which helps the
In fact, government stimulus and temporary
insurer to price your policy. Typically, a higher
changes in insolvency laws ultimately resulted in a
turnover drives a rate reduction, and vice versa,
benign loss environment.
but it is important to remember that all turnover isn’t equal.
Whilst insurer appetite has largely recovered from the initial shock of the pandemic, with premium
Consider what else you might want to disclose
rates falling and risk acceptance rates back at pre-
about your sales that could also impact your
pandemic levels, peak renewal season approaches
insurer’s underwriting. For example, has the
and insolvencies are once again slowly increasing.
distribution of your risk changed? If you have a
“Whilst insurer appetite has largely recovered from the initial shock of the pandemic ..., peak renewal season approaches and insolvencies are once again slowly increasing.” AICM Risk Report 2022
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