Zurich is concerned about the current level of unrealistic insurance pricing, particularly in the social housing sector, and is stressing the need for a return to sustainable pricing to ensure that housing associations aren't left with premium hikes they can ill-afford.
The impact and increasing frequency of severe weather and flooding incidents is a key issue driving up claims costs and this needs to be factored into premiums, but it is not the only factor.
The cost of liability claims (including injury claims) has risen by over 50% since 2003 due to legal costs and lifetime settlement costs for such claims outstripping inflation. The cost of global reinsurance (which enables insurers to offer higher protection levels) has also risen following significant losses.
The insurance market has a responsibility to support realistic pricing to provide social landlords with the protection that both they and their tenants need now and in the future.
