Take Cover… The Insurance Industry Is Changing Forever
You may have already seen that the insurance landscape is changing.
A wide range of new threats are emerging in an increasingly digitalised climate, leading to a series of fresh challenges for independent agencies in the UK. Demands are different today than they were a matter of years ago, and as a result, there have been considerable developments in how insurance is being provided and delivered.
Cybersecurity, for example, has turned from a luxury service into an essential one. Almost every business in the modern era now utilises internet services, and reports of cybercrime are on the increase every year.
For half a decade, Risk Box have supplied specialist insurance to keep businesses safe. Now, in the midst of a new movement, we have launched a study to map out these industry changes and ascertain how people are responding.
Dozens have already completed our official Risk Box Insurance Survey covering the changing landscape, and we’re hoping to attract many more submissions in the coming weeks.
In addition to the survey, we’re also set to take a deeper dive into our findings by hosting a focus group with leading agency owners in central Manchester on the 16th January 2019. The event will be for twelve attendees from a range of independent UK-based businesses in the creative agency sphere.
How the results are shaping up…
Ahead of the focus group, we are already beginning to see some very interesting results from the Risk Box Insurance Survey:
- Professional Indemnity and Office Package insurance lead the way
The two most popular forms of insurance purchased included Professional Indemnity insurance (90%) and Office Package insurance for property and liability (60%). We expect to see Office Package insurance statistics rising as more people partake in the survey, especially given how this type of cover includes Employers Liability (which is usually a legal requirement for HSE compliance).
Around a third of participants stated that they had Cyber and Data Risks insurance and Directors’ & Officers’ Liability insurance. The relatively low take-up for Directors & Officers Liability cover is slightly concerning but not necessarily a surprise. This is very valuable cover for individuals and can protect personal liability, which is unlimited regardless of whether the business is a limited company or not. However, it appears people are not yet aware of how important it can prove to be.
The rise in Cyber & Data insurance was expected. Five years ago, very few agencies even considered it. Today, it’s one of the most crucial forms of cover.
Based on the current pool of responses, the least popular form of insurance appears to be Group Travel insurance.
- Insurance spending varies considerably
Agencies are a generally lower risk to insurers compared to traditional professions (accountants, solicitors, etc..), meaning insurance costs should be lower.
Interestingly, our survey has shown that insurance spending seems to vary depending on the company in question. This suggests that there’s real value in providing a mixture of deals for clients.
Responses have revealed that agency insurance spend (UK-managed agencies with turnover less than £5,000,000) is rarely more than £10,000 per year, with total expense falling anywhere between three- and five-figure sums.
- The importance and significance of insurance is recognised
We are also seeing “business protection” as the key motivator for purchasing policies in the first place, closely followed by “legal obligation”. This reveals that people are aware of the importance of insurance when it comes to security and are eager to tick all the necessary boxes to prevent legal issues later down the line.
Indeed, when asked about the significance of insurance overall, two-thirds of responders declared it as being “very important” to the wellbeing of their firm… but most admitted they spent less than five hours a year dealing with insurance.
- Face-to-face is the number one method of communication with providers
With regards to dealing with the insurance policy itself, from taking out new policies to making changes to existing ones, the results revealed that many are keen to interact with insurers or brokers via the traditional means: face-to-face contact, telephone and email. Video call was also cited as a viable option for half of the participants – and more than a third of respondents stated they’d find a video call to be valuable in the event of a large loss.
- Cyber and legal support are in-demand services
When presented with a wishlist of potential new insurance services, survey participants chose Cyber & Data Risk Management, Legal Helplines, and Contract & Tender Insurance Assistance as the most valuable.
Most businesses are already subscribing to accounting and online software (with spending varying widely), and it appears many want to continue this trend.
Overall, what we’re seeing so far is a wide recognition of the value of insurance policies in the creative agency sector, despite a low amount of time spent dealing with insurance throughout the year. Businesses prefer going through brokers rather than direct, and the demand for modern legal and cyber support is on the increase.
Risk Box is changing with the insurance sector
Big things are happening in the insurance sector, and we want to continue expanding and enhancing our services for our customers so we can take Risk Box to the next level.
The results of both the survey and focus group are set to be published in due course, but in the meantime, we’d love to hear your input. We’re asking all our readers to take a few minutes to complete our survey before it closes. Once you have done, or if you’ve completed it already, please take the time to share it with other agency owners. Thank you in advance for your continued support and we can’t wait to read your responses. If you have any questions about the survey and would like to speak to a member of the Risk Box team, simply call 0161 533 0411. We’re also available on firstname.lastname@example.org.