The savings meter
Savings achieved in 2009 on your 2010 insurance budgets
(Premiums studied (€ 1 Million) - Savings achieved (€ 0.4 Million) - 40% drop in premiums)
Of the 1 million euros of insurance premiums studied by Audit Chorus Conseil in 2009, we have achieved savings of 400 000 euros on our clients’ 2010 insurance programs.
2010 market trends
Even in a context which, at first sight, appears favourable to clients – with a drop in the indexes used to calculate liability premiums (the FFB and RI indexes) and a more settled reinsurance market than expected – it is in 2010 that insurers are really going to feel the effect of the economic crisis, with the emergence of a scissor effect caused by:
- A drop in technical income (defaulting companies, an upsurge in frequency claims due to cuts in corporate maintenance budgets, an increase in claims under ‘Professional Civil Liability’ and ‘Board Members Civil Liability’).
- A fall in financial income (plummeting stock exchange profits).
As a result, insurance companies are opting for a return to technical results by closely examining their portfolios and targeting increases at underpriced business or deciding on across-the-board price hikes in the targeted branches or activities.
An upward trend in insurance premiums from +7% to +10% in 2010