Recycling Insurance is at last seeing an increase in the number of Insurers competing for business.
As an independent broker Butler Evans have been closely monitoring this marketplace over the last year and maintaining access to all available insurers. We also have gained some insight into the underwriting requirements of these insurers and their respective premium rates.
As at January 2016 we are aware of twelve insurers actively quoting Recycling Insurance and premiums can range from 0.40% to 2.00% rate on the property values insured, depending on the type of recycling involved and the risk management strength of your business.
Bear in mind that Direct Insurance (DIUA)/Recyclesure, Wasteinsure and Miles Smith are not insurers, these are brokers with tied agreements and do not give you a full market view.
Why is there now more competition?
The experience of the Recycling Insurance market is not unusual, it follows an established trend of the Insurance Market nicknamed a ‘hard-market’ cycle. It began with a rise in frequency of large fires hitting insurers across the Recycling Insurance market, this caused a knee-jerk reaction by most to withdraw cover. The initial contraction was followed by a tough cycle where Recycling Insurance premium charges increased dramatically while Insurers who remained in the market tried to simultaneously reduce risk factors in the sector through risk surveying & improvement.
While the premium rates for Recycling Insurance are high there is more motivation for the Recycling & Waste businesses to work on risk management. This has an impact on the frequency of the large fire losses which triggered the initial knee-jerk reaction by insurers. We are now in a position where the Recycling Insurance market starts to look more attractive again and we start to see an inflow of new insurers which in turn leads to more competition and a drop in Recycling Insurance Premiums.
Where are we now in the Recycling Insurance cycle?
Over the last year we have seen gradual increase in the number of insurers entering the market, within the last two months to January 2016 we have seen a marked increase in the number of insurers actively quoting for Recycling Insurance.
How quickly will premiums fall?
In past property led insurance cycles such as the hard market that affected Food Risks in the mid 2000’s we saw rates fall rapidly from a peak that averaged 1.25% premium rates to a level of 0.5% within a period of six to twelve months.
There is no reason to believe this trend cannot be duplicated in the Recycling Insurance Market.
How can my Recycling & Waste business benefit from premium rate falls?
Early into the softening of this market Insurers will be looking for an ‘underwriting rationale’ to justify reducing their premium charges. By far the strongest argument will be a good fire risk management strategy within your business.
Using a good independent broker who has a specialism in Recycling Insurance, like Butler Evans, will help.
Fire Risk Audits
At Butler Evans we have always promoted risk management strategies and we have resources to help Recycling & Waste businesses test their own Fire Risk Management strengths.
A full Fire Risk Audit costs from £295 including VAT and if your business subsequently becomes an Insurance Customer, we will refund half that cost.
To get a Recycling Insurance quote from Butler Evans or for to contact us for anything else please visit our dedicated page: