Construction and manufacturing sectors among the main users of credit to cover insurance costs – Premium Credit | Latest news



The construction and manufacturing industries have been among the top sectors to rely on credit to pay for their insurance, according to the latest research from Premium Credit.

The premium finance provider’s latest analysis for 2019 and 2020 found that construction companies accounted for 8% of all premium credit net advances in 2020, while manufacturing accounted for 7% of advances.

Next are the transportation, professional, scientific, retail and wholesale sectors – these five industries together accounted for nearly 31% of all net advances.

Owen Thomas, Director of Sales and Marketing at Premium Credit, said: “The cost of commercial insurance has increased dramatically and that, coupled with the fact that many businesses saw their cash flow deteriorate during the coronavirus crisis, means more of them are using credit to pay for their coverage.

“This is reflected in the fact that the amount of premium funding we provided to businesses last year was 11% higher than in 2019.”

Underinsurance

The most recent research from the premium finance provider reveals the impact of underinsurance, with 9% of businesses sustaining property or property damage because they were unable to make a claim. reason for not having insurance or being underinsured.

However, last October, the Premium credit Insurance index found that 51% of SMEs had stopped paying for a range of business insurance policies, such as employer liability, business property coverage, professional liability and cybersecurity.

As a result, the average losses were around £ 2,000.

The latest data from Premium Credit also revealed that SMEs are increasingly borrowing to pay for their insurance, with total net advances for premium financing increasing by more than 11% in 2020 compared to 2019, while the number of fonts only increased slightly.

This is supported by independent online research conducted by Consumer Intelligence, which interviewed 291 SME owners and managers between April 1-3, 2021.

It found that nearly one in four SME owners and managers who use credit increased the amount they borrowed over the past year, to an average additional credit of £ 1,300.

Meanwhile, 73% of SME bosses who used credit to pay for their insurance said the Covid-19 pandemic was their main reason for borrowing, although premium increases were also blamed by 36% of companies.

Percentage of SMEs that rely on credit to purchase insurance and what insurance policies they have purchased

Source: premium credit

Insurance Percentage of SMEs that use credit to purchase insurance – what coverage have they purchased?

Car insurance

75%

Home Insurance

52%

Employer liability insurance

30%

Business interruption insurance

26%

Cyber ​​insurance

22%

Key man insurance

17%

Insurance of directors and officers

ten%



Source link

Previous Gasoline And Diesel Prices Today In India: Gasoline And Diesel Rates Today In Delhi, Bangalore, Chennai, Mumbai, Hyderabad And Other Cities
Next Jones Lang LaSalle Incorporated: Last mile distribution facility in northern New Jersey sells