“Alarming” was how Premium Credit’s strategy and marketing director Adam Morghem described the findings of its recent study involving insurance professionals and their worries over a ‘bad Brexit’.
The premium finance firm, which has head offices in Leatherhead and Dublin, released the following survey results:
- 37% point to a ‘high risk’ of company directors being taken to court over their organisations’ inadequate Brexit preparations;
- 38% believe a poor Brexit will lead to more businesses making insurance claims; and
- 42% are afraid commercial insurance claims linked to Brexit will be rejected.
Of the potential claims, 38% are most concerned about Directors & Officers (D&O) cover while 31% are worried about business interruption risks. In addition, only 21% are of the view that clients have sufficiently kept their insurers up to date when it comes to the specific Brexit-related risks they face.
“Our findings are alarming but there is still time for many businesses to ensure they have appropriate plans in place for a bad Brexit and that they have provided their insurers with the relevant information to ensure that they have sufficient cover here,” said Morghem.
“We are already seeing many companies reconsidering their cash flow and choosing to pay for their insurance over instalments through, for example, premium finance as opposed to paying in one go.”
Morghem warned of further cash flow issues in the event companies suffer from a poor Brexit and their insurance does not pay out or only partially meets their claim.