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A BACKGROUND TO THE PRESENT INSURANCE MARKET |
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A
Background
to
the
Present
Insurance
Market Insurance
has
always
been
subject
to
business
cycles
in
the
same
way
as
any
other
business
and
the
early
1990’s
had
been
expected
to
see
a
return
to
profitable
underwriting.
However
the
economy
was
still
stagnant
and
this
did
not
occur. Foreign
insurers
had
entered
the
British
market
in
anticipation
of
a
revival
and
then
found
they
had
to
cut
rates
to
buy
their
market
share,
at
the
same
time
the
advent
of
Direct
Insurers
increased
competition,
which
resulted
in
a
downward
spiral
of
premium
rates
which
by
June
2001
was
seeing
Insurers
and
Lloyds
syndicates
withdrawing
from
certain
areas,
as
it
became
impossible
to
write
business
at
a
profit. The
collapse
of
the
Independent
Insurance
Company
was
the
trigger
to
a
much
needed
correction
which
saw
a
general
increase
in
premiums
but
this
was
followed
by
the
WTC
tragedy
and
the
huge
insurance
cost
has
affected
the
worldwide
market.
Normally
foreign
losses
do
not
directly
affect
the
UK
market
but
on
this
occasion
there
have
been
two
side
effects,
firstly
major
UK
insurers
have
suffered
direct
losses
and
secondly
the
bulk
of
the
losses
have
fallen
on
the
Global
Re-insurance
Market.
The
latter
has
had
a
disproportionate
affect
on
UK
premium
rates
as
all
insurers
re-insure
up
to
90%
of
the
risks
they
accept,
with
the
Re-insurers
now
substantially
raising
their
premiums
to
recover
the
losses
which
are
being
passed
down
directly
to
policyholders.
The
past
10
years
have
seen
the
most
dramatic
repositioning
of
the
insurance
market
since
the
1960’s. The
intense
competition
has
forced
composite
insurers
to
reduce
their
expenses
by
closing
offices
and
cutting
staff,
transferring
many
of
their
previous
services
to
Brokers,
and
have
now
become
wholesalers
of
insurance
products.
Amalgamations
have
reduced
choice
and
more
serious
still,
there
has
been
a
marked
reduction
in
underwriting
capacity,
consequently
some
insurers
are
withdrawing
from
high
risk
sectors,
such
as
Liability,
and
those
remaining
substantially
increasing
premiums. All
these
factors
have
created
an
unprecedented
turmoil
in
the
market
and
it
remains
to
be
seen
whether
there
are
any
further
shocks
in
store
but
we
can
expect
further
restructuring
over
the
next
few
years,
after
which
the
insurance
scene
will
be
radically
changed,
with
a
sharp
division
between
Direct
Insurers
and
the
traditional
market
and
a
substantial
reduction
in
the
number
of
Insurance
Brokers
to
provide
impartial
advice. We
live
in
interesting
times. The
Bateman
Group Who
are
we? What
can
we
do
for
you? The
company
was
established
by
our
Chairman
in
1967.
At
that
time
insurance
companies
were
changing
to
wholesalers
of
insurance
products
rather
than
providing
an
advisory
service
and
this
created
a
vacuum,
which
favoured
those
brokers
prepared
to
meet
this
requirement.
Since
then
the
market
has
continued
to
change
and
we
have
concentrated
on
providing
a
service
for
discerning
clients
who
recognise
the
added
value
of
personal
service. We
have
grown
organically
as
well
as
by
acquisition.
Julian
Bateman
continues
the
family
tradition
and
was
appointed
Managing
director
in
1998
and
has
since
re-organised
the
Company
to
meet
the
new
challenges
in
the
Market
and
continue
to
concentrate
on
our
specialist
areas.
The
company
is
now
composed
of
four
divisions
covering
Commercial,
Life
and
Pensions,
Specialist
Schemes,
and
Personal
Lines
insurance. Our
Schemes
Business
is
expanding
rapidly
particularly
where
Landlords
are
concerned.
We
handle
all
administration
and
claims
which
means
that
clients
have
direct
access
to
our
Underwriters
and
staff
instead
of
having
to
deal
with
constantly
changing
personnel
at
large
insurance
companies
or
their
call
centres.
We
are
also
accessible
by
Fax,
E-mail
and
our
Website. Our
Senior
Underwriter,
Colin
Jarvis
is
available
to
discuss
individual
risks
and
meet
clients
anywhere
in
the
UK.
The
keynote
of
our
business
is
understanding
our
clients
and
their
individual
needs
and
providing
the
solutions
at
a
competitive
cost. We
currently
employ
24
people
with
a
wide
diversity
of
experience
and
technical
knowledge
who
can
deal
with
any
aspect
of
your
Commercial
or
Personal
Insurance
requirements.
Our
aim
is
to
provide
a
personal
professional
service
on
a
long-term
basis. We are small enough to give a personal service but large enough to protect your interests. |
