A SHORTAGE of regional underwriters accepting liability risks is leading to severe delays with processing renewals, warns Holman Insurance Brokers (Holmans).
The independent Lloyd's broker is urging other brokers to look into renewing their cover early and to allow an extra fortnight to obtain cover for new risks to avoid being uninsured.
Holmans believes hardening reinsurance rates have led to binding authorities being withdrawn from many Lloyd's brokers. As the regional market begins to stop writing liability business, trade has begun to flow into the London Market.
Andrew Holman, managing director of Holmans, said: “A liability log-jam has been created in the London Market, which regional brokers should be aware of. With the market contracting, service levels are under pressure and delays in placing the business are going to get worse.
“Brokers should make sure they send in updated renewal details on time and only send liability risks to one Lloyd's broker. Doing a market exercise in London is of little use, as invariably the few underwriters available get frustrated at seeing the same risk from several sources, and the duplication exacerbates the delays.”
