Double blow for business as rising insurance costs pushes up annual bill

Businesses in the UK may see price rises of between 10-20% in the cost of their annual insurance bill,  worth hundreds or even thousands of pounds, according to estimates from PwC UK. This comes as a direct result of rising CPI, which has significantly increased the costs of materials and labour involved in the settlement of insurance claims. The global supply chain crisis has further exacerbated this, resulting in longer and more costly repairs due to a lack of supply of materials and labour. 

This will be a further blow to businesses already struggling with the impact of rising CPI increasing their other costs, as well as industrial action this week.

Mohammad Khan, Leader of General Insurance at PwC UK, said:

“This week’s industrial action will no doubt have made a significant impact on businesses across the country, and firms face a double blow with the potential of a 10% - 20% increase in their annual insurance bill.

“With CPI at a 40 year high of 9.1%, insurers have increased premium rates in order to cover the cost of higher claim settlements, which arise as a result of the higher inflationary environment and delays due to the global supply chain.”    

“For some, this may result in premium rate increases of up to 20% on their like-for-like cover. This no doubt comes at a time when many businesses are struggling and may lead to some considering the extent of the non-compulsory elements of their cover or shopping around in order to obtain a cheaper quote.”