Business Outlook 2025 | Christie Insurance
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Insurance Landscape Overview
Despite some significant losses, seen particularly in the UK motor sector, the insurance market has shown stability with good results in 2024.
As we set out in Business Outlook 2024, inflation has driven up construction costs, which has had a knock-on effect on insurance premiums. Even though inflation has stabilised, the baked in cost of repairs will still be reflected in future premium costs across all product lines. A key driver to UK insurance costs is the cost of reinsurance. Primary UK insurers, such as Aviva, AXA, RSA insure themselves with these reinsurers. The number of global reinsurers is small, and the impact of escalating weather events, both in the UK and further afield, impact the cost of insurance premiums for UK domicile insurers. It is yet to be seen how global weather events will affect the cost of re-insurance.
Life insurance remains a cornerstone of financial planning for protecting shares, loans, key staff, and families. In recent years, the life insurance sector has experienced unprecedented change, significantly impacting consumers. Canada Life, Aegon and AIG Limited have all ceased trading in life business and this has restricted the competitive environment in the life insurance market, however despite this, premiums and service quality, including claims, have been maintained.
Targets
Christie Insurance offers insurance policies to meet the needs of businesses in the sectors that Christie & Co and Christie Finance operate in. The team provide advice on commercial insurance, employee benefits and life protection.
Latest Activity
A property investment firm needed Keyman Insurance for their Pharmacist to meet a bank loan requirement. While setting up this cover was straightforward, the Directors later decided to add a Death in Service policy.
The process became more complex as the Directors needed to complete Trust documents, requiring careful consideration of their financial arrangements. Although it took over six months to finalise the paperwork, the company successfully secured the required Keyman cover and additional personal protection, ensuring compliance and long-term financial security. This case illustrates that a properly founded insurance protection programme requires careful consideration, and we are glad to have played our part in ensuring our client now has a sound basis for their protection insurance.
Market Predictions for 2025
Looking to 2025, in the context of a positive 2024, together with the desire for many insurers to grow their accounts, it is probable that there may be a softening of premiums next year together with the expansion of coverage, that in previous years has been more difficult to achieve. All of this sits in the context of everchanging political and environmental issues that affect not just the UK, but also the wider world.
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