An Unfortunate Reality

Hello again,

The main focus of news headlined for insurance this past month is that of Under insurance, fraud and increasing cyber problems.

In short, Insurance companies are saying with replacement values and underlying costs are going up across the board, which means higher costs to Insurers and by definition to customers.

But with higher prices forcing customers to under insure and not get full cover or leave insured items at the previous declared values.. Insurers are in a dilemma as to how they will price 75% say, of what the real premium should be and it just isn’t how they operate. Be it commercial or personal it’s hard to isolate a part when the object is to insure the whole. So under really insurance isn’t an option. Many do but in the event of a claim the pay-out maybe pro-rata but more likely voided in total and the premium not returned.

Do insurers take it on the chin and accept a lower margin for the risk or exempt even more areas previously taken for granted? Do customers not pay and gamble it won’t happen to them?

It’s a real dilemma and rates will fluctuate dependent on supply and demand for all areas and ongoing increases in crime don’t stop!

Insurance is founded on fear just as the stock market is founded on greed, albeit such deemed crass analogies are frowned on, and more delicate words like prevention and investment are used. But its hard to deny basic language and we need to stick with basics or get lost in legal terminology and lose the plot altogether.

Fraud is rampant and too many people are pretending to be who they are not. I have been watching Happy Valley and whilst Sarah Lancashire does seem to have a tough time, the story lines are the tip of the iceberg in so far as how people are shown.

Fake news makes it so much harder to trust what you read, and recently the Financial Conduct Authority reported an increase of 14 times the amount of false internet advertising for financial services which includes insurance, they had to get removed. We don’t have a figure of who if anyone was arrested as maybe there wasn’t enough evidence, but the sites were removed and we don’t know if a new site was created overnight or not, but criminals don’t care they are 24/7

Cyber-crime is now massive, we are talking tens of billions of £’s. We hear a lot about banks and how we need different log-ins for everything with no less that 12 characters which have to includes higher and lower case, numbers and the kitchen sink and its not funny.

We here at Trident, now have not only to log in to our computers but verify separately with a second code that we are who we say we are, and the code is sent to our phones and changes every 20 seconds. If that’s not telling us we are all on the back foot now, I don’t know what is. And that is not just protect the company but all the data we keep.

Cyber policies are not sufficient and have to improve and they will, but we all have to show we are taking precautions where we can regardless to even get a policy, and the requirements are tough.

Algorithms and the cloud security are simply not enough anymore, it’s now codes on codes just to start the ruddy day, on top of digital codes to get from room to room!

If you are one of the lucky ones who has not been intercepted, hacked or had a Bitcoin ransom note sent to your email, you have done well.

Big companies have had to throw tons of money at trying to stay safe and may in some degree have equalled the chances of getting hacked to 50% here the odds were definitely stacked against the.

But the criminal element doesn’t throw in the towel, they’re now looking at lesser mortals and companies and they just don’t care. With computers throwing out random messages via emails with viruses attached they know some will eventually hit someone who felt it wasn’t going to happen to them!

It is not for me to generate fear, we all live with fake news every day, but it is for us as your Broker to highlight things are not getting easier and be frank and honest at all times. We can’t underestimate the dangers we all face, in regards to crime, but we can minimise the open risks

What can be done?

First stop thinking it won’t happen to you, unfortunately the odds are firmly stacked against everyone now and prevent where you can.Computers need to be turned off at night and access codes changed every month and if that’s too much definitely every quarter and from 4 to 10 or 12 digits. Just ignore emails in Junk or spam, if they really want to get in touch they can call or post to you. Yes, it’s tempting to open ‘you are a winner!‘! But please ignore it.Check all windows and locks work and just make it harder for criminals, don’t advertise you will be away, tell a neighbour or member of your family and ask them to check all is ok. e) Maybe install sensors which will light up and a good alarm system objectively linked to a police station. Or one of those systems that are linked to a camera that links to your phone. f) Please don’t ignore the reality of what’s happening, it really could happen to anyone. g) Above all else, and it’s a big ask, please read your policy documents to know what you’re not covered for. It’s kind of perverse logic, but it’s necessary.

There is only so much we all can do, but if you have shown you have done all you can the insurers will find it hard to say what you haven’t done and void a claim or try to pay a pro rata percentage.

It’s an unfortunate reality that we have to adapt and evolve to changing times.

Always the responsibility is with the owner of the company, house or vehicles. We can’t guarantee anything, but we can make it a damn site more difficult for the criminal element and increase our chances of a safer working and living basis in our businesses and homes.

You are our primary concern, and Trident Insurance are here for you in good and bad times.

Kindest regards

Robert D Marshall