Covid-19, Russia’s war in Ukraine, climate change and Brexit have wreaked havoc on hundreds of millions of people across the globe.
The price of everything from dairy to the energy we need to heat our homes has risen thanks to this toxic quartet, so it is unsurprising that the price of insurance premiums has also gone up. However, according to Mactavish analysis, the first three have not had as much of an effect on the price of premiums as Brexit.
According to our analysis of prices pre- and post-2019, Brexit appears to have been the single largest contributing factor to a spike in the cost of commercial insurance, resulting in a 100% increase in the UK, compared with 60% for the rest of the world.
In this article, Mactavish chief executive Bruce Hepburn shares his views on the effect of Brexit on commercial insurance in UK. “It would seem that from an economic point of view, insurers looked at Brexit and interpreted it as another crisis affecting the global economic outlook and worsening the risk environment. For policyholders, this translated into prices rising far faster in the UK than the rest of the world.”
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