Hard-to-place insurance often costs more than insurance for a standard risk.

This is not always the case, but specialist insurers may need to price for exposures that are more difficult to assess or have fewer competing markets.

What can increase the premium? #

Factors can include:

• Higher-risk activities.
• Significant claims history.
• Large potential claims.
• Unusual contracts.
• Limited insurer competition.
• Hazardous property exposures.
• Overseas operations.
• High policy limits.
• New or emerging risks.
• Limited historical loss data.

Can the insurer also change the excess? #

Yes.

An insurer may manage a higher-risk exposure through a combination of:

• Higher premium.
• Higher excess.
• Lower policy limit.
• Sublimits.
• Specific exclusions.
• Risk management conditions.

The premium should therefore not be considered in isolation.

Can providing more information reduce the premium? #

Sometimes.

Clear information about controls, experience and risk management can help an insurer assess the risk more accurately.

Examples can include:

• Improved safety procedures.
• Better contractual controls.
• Staff training.
• Risk engineering improvements.
• Cyber security controls.
• Changes made following previous claims.

These measures do not guarantee a lower premium, but they can improve the quality of the underwriting submission.

Should I choose the cheapest specialist quote? #

Price is one consideration, but the scope of cover is also important.

A cheaper policy can contain materially different exclusions, limits or conditions.