Aviva has again surveyed senior business leaders in the UK to find out what risks they’re concerned about, all of which are outlined in the insurer’s Risk Insights Report for 2023.
Based on the responses of senior leaders from over 1,200 businesses in the country, below are the 10 “most pressing” risks for British firms with a year-ago comparison.
Meanwhile it was highlighted that 21% of UK businesses have either reduced or considered reducing their insurance cover given the current economic backdrop.
“During 2022 cost pressures evolved into a full-blown cost-of-living crisis across the UK economy, driven by systemic inflation, the impact of the war in Ukraine, and enduring post-Brexit and post-COVID pressures,” noted Aviva UK & Ireland general insurance chief executive Adam Winslow in a release sent to Insurance Business.
“While the risk profile for many companies has altered dramatically, many businesses have not taken action to ensure their insurance is relevant to how they operate today. Our review of policies, demonstrating that 50% of businesses are underinsured, is concerning.”
Winslow warned that the threat posed by underinsurance among small- and medium-sized enterprises is now at a critical point. Of the business leaders polled by Aviva for its latest risk insights report, 79% were from SMEs; the remaining 21% from corporates.
Winslow added: “Businesses that have not updated their insured value in the last couple of years are likely to find the costs of rebuilding or replacing buildings and equipment has materially increased, compared with what they are covered for. This level of underinsurance can lead to unexpected and unwelcome additional costs, should the business find itself needing to claim.
“Supply chain disruption or failure may massively extend the time it would take a business to get back on its feet in the aftermath of a major incident. It is really important that companies consider this when assessing their business interruption cover, and how long it would take them to return to normal operations in the event of a significant loss such as a flood or fire.”
