Broker Aon reports increase in business insurance demand

According to reports from delegates at a recently held symposium in Madrid, Aon Corporation has reported an increase in enquiries and demand for certain types of business insurance, despite a reduction in the willingness of insurers to pay on claims for that particular insurance type.

While the worldwide economic recession, that started in 2008 with the global banking crisis, has seen firms develop a greater level of risk awareness, some insurers have come to express misgivings on expanding the specialised business liability insurance that Aon offers. Insurers are discouraging claim activity under the insurance through such tactics as wording policies much more specifically, minimising their liability at policy renewal, and instituting any number of tactical manouevres in order to not only delay claim payments but also to lower the amount paid out on those claims.

While commercial insurance is still an absolute requirement for companies who wish to safeguard against profit loss, industry experts agree that the coverage provided should be part and parcel of an enterprise risk management programme that boasts a wider scope.

Aon Risk Solutions recently published several guidelines in order to ensure their policies were maximised by companies utilising their business insurance.

Aon urged companies to participate in the development of an ERM programme that is specially designed to minimise risks for the entire scope of the business in an effort to reduce the cost of not only insurance but also any additional measures related to risk financing.

Aon also recommended that companies ensure that their current insurance policies are at an accurate value in addition to broadening the language in a business insurance policy in order to increase the chances of an insurer paying on the claim.

Additionally Aon urged organisations to pick and choose carefully when selecting a commercial insurance policy to ensure its structure is fully customised for them and their particular needs.

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