Many are feeling the effects of the current soft insurance market. Premiums are under pressure, clients are shopping around more frequently, and there is a noticeable trend toward competing on price alone. This environment is familiar to many mortgage brokers and small business owners in Cardiff and beyond who are re-evaluating their insurance options.
The reality is that the most competitive offer is no longer determined solely by price. True value lies in the assurance that your insurer will deliver when it matters most.
Price Is Only One Factor
It’s understandable to seek the lowest premium when a client’s commercial property or buy-to-let portfolio insurance increases at renewal. However, opting for the cheapest coverage often leads to complications when a claim arises.
The wiser approach is to prioritize insurers who respond promptly, handle claims efficiently, and provide meaningful support during difficult times.
More Than a Policy
Leading commercial insurance providers now offer services that extend beyond the policy document. These include:
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Meaningful risk assessments that provide practical advice on protecting your business or property investments.
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Proactive prevention measures such as smart sensors for properties, disaster preparation resources, or telematics for fleet insurance.
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Dedicated support from specialists who understand your business, rather than call centers with limited knowledge.
The Role of Technology
Insurers who invest in advanced technology—such as AI and improved data systems—are better equipped to assess risk accurately. This leads to more precise pricing and faster decision-making.
For mortgage brokers, this means quicker turnarounds on buy-to-let applications. For small businesses, it results in coverage that aligns with actual operations rather than generic, inadequate policies.
Building Relationships Early
The most effective insurance relationships begin long before renewal notices arrive. Ongoing communication throughout the year allows for a deeper understanding of how a business is evolving and helps identify potential issues before they become significant problems.
This proactive approach is similar to consulting your accountant well before tax deadlines—it prevents last-minute crises.
Recognizing Unique Risks
While the overall market may be soft, certain sectors continue to experience rising claims. Motor insurance remains complex, and liability claims present their own challenges. A one-size-fits-all approach is insufficient.
A salon faces different risks than an engineering firm. An office block has different needs than a retail store. Insurance should reflect these distinctions.
Implications for Mortgage Brokers and Small Businesses
For mortgage brokers, buy-to-let clients require insurers who specialize in property investment—not simply residential policies with adjustments. Speed and expertise are critical, especially in time-sensitive transactions.
For small businesses, adaptable coverage is essential. Your insurer should recognize that your operations may change significantly from one year to the next.
Conclusion
In a soft market, the goal is not to find the cheapest premium, but to identify genuine value. This means partnering with insurers who offer reliable support, understand your business, and adapt as circumstances change.
While no one can prevent all claims, you can work with a team that stands behind you when needed. In an industry where many are cutting corners, that commitment is not just refreshing—it’s essential.
If you would like to discuss your commercial insurance needs in straightforward terms, without jargon or pressure, please contact the Protect Commercial team. We are here to help.
Author: Matt Duffy
