BIBA works with Allianz to create a new guide to help reduce the risk of underinsurance
11th May 2022
The British Insurance Brokers’ Association (BIBA) and Allianz have created new guidance that supports insurance brokers in helping their customers avoid the risks associated with being underinsured.
Underinsurance remains a persistent and widespread problem. The Chartered Institute of Loss Adjusters estimates underinsurance to be present on over 40% of claims and the degree of underinsurance to be around 35 to 45%. BIBA made a commitment in its 2022 Manifesto to highlight the dangers of underinsurance and welcomed the support from Allianz to produce updated guidance for BIBA members and their clients.
The new digital guide will be distributed to BIBA members and Allianz’s panel of brokers and is available to view at the BIBA 2022 Conference in Manchester.
Graeme Trudgill, BIBA Executive Director said: “This new guide couldn’t be more timely. Not only do we know that underinsurance is already an issue, but the current economic climate, supply chain problems and rapidly increasing inflation could all mean that people and businesses are underestimating the amounts that they need to insure. Allianz’s input on this vital topic will help us raise awareness and the information in the guide will help to reduce the problem.”
The easy-to-read guide explains why getting the right level of insurance is vital; what might cause underinsurance; and how to assess levels of cover for buildings, contents, business interruption, liability and cyber.
Nick Hobbs, Chief Distribution & Regions Officer, Allianz Commercial, added: This topic resonates with us. Our own 2022 survey of SMEs has revealed practices that would leave businesses without sufficient cover in the event of a relevant loss, so we are committed to working with BIBA to reduce that potential. We want customers to secure the exact levels of cover they need – and it’s our broker partners who provide them with that crucial guidance, the absence of which reveals itself too late.”