Working in the hospitality sector can be a rewarding business but working in bars, cafes, restaurants and pubs come with many unique sector risks. Keeping employees and the public safe and ensuring food hygiene standards are met are vitally important. And protecting those Tripadvisor reviews and food hygiene ratings.
But for many hospitality owners or managers, the first time they find out that they are under-insured or non-compliant with health and safety regulations is when it’s too late – following an accident, a claim or an enforcement visit.
Irwell’s Senior Class Underwriter, Bill Cobley looks at what the new government’s initiatives mean for private tenants and landlords.
The UK’s rental market is in crisis. Plagued by substandard housing standards, an imbalance between supply and demand, soaring costs, arrears on the rise along with the uncertainty of Section 21, the new Government has a lot to tackle to rebuild the rental market.
Labour is selling itself as the party of “wealth creation”, vowing to improve living standards for working people. Within Labour’slegislative programme, two aspects stand out which will impact landlords and renters alike.
Firstly, the Planning and Infrastructure Reform Proposal sets out to accelerate the quantity, and improve the quality, of the UK’s housing stock.
Meanwhile The Renters’ Rights Bill will address the insecurity and injustice that many renters and landlords experience by fundamentally reforming the private rented sector and improving the quality of housing in it.
Ending the bad housing pandemic
With around three in ten people living in ‘bad housing’ according to research by Shelter UK, these reforms will be welcomed with open arms.
The research also revealed that bad housing is more common in private rented properties which means that 3.3 million people live in unacceptable conditions.
‘Bad housing’ is defined as homes that are overcrowded or fail to meet the government’s ‘Decent Homes Standard’ – housing which is damp, cold, infested or lacks modern facilities or is in need of substantial structural repairs.
Sadly, around 845,000 children in private rented housing are now living in what is classed as bad housing which can have a detrimental impact on their physical health and mental wellbeing.
This unacceptable trajectory cannot continue and must be addressed by all stakeholders.
How does the Government plan to improve substandard housing conditions?
With one in six UK homes at risk of flooding and the UK 9% wetter than 50 years ago, the insurance sector has experienced a surge in unprecedented flood insurance claims in recent years. Fuelled by the housing and climate crisis, Labour pledges to ‘Get Britain building’, as they seek to accelerate the delivery of high-quality homes and communities.
The Planning and Infrastructure Reform Proposalaims to create 1.5m new homes in areas with minimal risk of flooding and will implement measures to tackle resilience to climate change by improving building standards.
The proposal should result in properties that are fit for the future and can withstand flooding, extreme temperatures, high winds and subsidence, as well as improving fire safety and energy efficiency.
How does the Government plan to improve the private rental market?
The new Government is determined to transform the experience of private renting by levelling the playing field between landlord and tenant.
The Renters’ Rights Bill will end Section 21 ‘no fault’ evictions to give renters more rights and protections to stay in their homes for longer.
Meanwhile fair landlords will enjoy robust grounds for possession where there is good reason to take their property back.
However, unscrupulous landlords take heed, the Bill will crack down on those who exploit, mistreat or discriminate against tenants with poor practices such as ‘bad housing’, unfair rent increases or bidding wars intended to force tenants out.
This greater stability will allow renters to build lives in their local communities without the fear of eviction or homelessness and give landlords continuity of rental income.
How can landlords better protect their business?
Research by The National Residential Landlords Association (NRLA) found that almost one fifth of UK homes are now privately rented resulting in over 4.6 million rented properties. Demand for rental properties has more than tripled compared with the demand before the COVID pandemic.
However, 12% of landlords said they sold property in the third quarter of 2023 and 28% of respondents said they plan to cut the number of properties they rent out over the next 12 months.
With this rental property shortfall, rent arears on the rise and new legislation reforms imminent, it pays for private landlords to be prudent.
If landlord-tenant disagreements arise, legal costs can quickly escalate, and some landlords may not have the resources to pursue potentially lengthy and expensive legal proceedings against a tenant. That’s where Irwell can help.
Irwell’s landlord’s legal expenses protection allows clients to pursue or defend their legal rights and provides invaluable legal advice throughout proceedings. Likewise, if you become involved in a dispute with the tenant relating to the owning or letting of the property or if a tenant has damaged the property, our insurance covers the associated legal costs.
For residential clients, our policy can extend to include rent guarantee for added reassurance, whilst the landlord is using the policy to obtain repossession of their property.
Working in the hotel and hospitality sector comes with unique risks.
From front desk to back kitchen, protecting employees and customers is of paramount importance. And at the same time protecting those Tripadvisor reviews.
But for many hospitality owners or managers, the first time they find out that they are under-insured or non-compliant with health and safety regulations is when it’s too late – following an accident, a claim or an enforcement visit.
Yes, there is one. Really. Us insurers have our day on 28 June. The day after National Bingo Awareness Day.
Insurance isn’t renowned for being a hot topic round the dinner party table or down the pub. It’s a grudge purchase. A necessary evil. Something most people and businesses try not to think about until the dreaded renewal day – or in the event of an unwelcome accident or incident.
That’s when us insurers become the unsung heroes of the FS world. We’re there to save the day when the hammers come down.
Insurance in the UK rose like a phoenix from the flames around the time of the Great Fire of London, where the devastation drove some canny cockney to conjure the idea of property insurance.
From there sprang the many forms of insurance we know today – from home and motor to health, wealth and business liability to alien abduction, ghosts and body parts.
Yes, you read that right.
Insurance that’s out of this world.
If you have ghosts haunting your business, who you gonna call? Maybe your insurer wouldn’t be your first port of call, but believe it or not, some UK business owners have insurance policies to protect their business and employees from the spooky supernatural.
You may not believe in aliens, but it turns out that many do. One London company has sold more than 30,000 alien abduction policies throughout Europe.
Meanwhile, back on planet earth, Julia Roberts has reportedly insured her smile for $30 million, Beckham’s legs are protected by a $195 million policy and Keith Richards hands have a $1 million price tag.
National Insurance Awareness Day was created to remind people and businesses about the importance of their insurance plans and policies.
We couldn’t agree more. With over 30 years’ liability experience, we’re an old hand in the insurance world. Or so we thought.
Insurance actually dates back to 3000-2000 BC and was even found inscribed on the Code of Hammurabi, the first written laws.
Share that little known fascinating insurance fact at you next diner party or board meeting.
Scaffolding businesses are essential to so many sectors as well as the most obvious construction industry. From building inspection and civil engineering to window cleaning, painting, TV production and events.
But working on suspended, aerial or supported scaffolding comes with many unique health and safety risks that can expose employees and the general public to H&S risks on a daily basis.
That’s why scaffolders need Irwell’s liability insurance that includes a health and safety compliance review tailored to the unique risks of each business.
From car sales and valeting to tyre fitting, repairs and maintenance, the motor sector is exposed to many unique health and safety risks.
Operating mechanical equipment, diagnostics and hydraulics, lifting heavy objects and working under heavy vehicles or fuel spillages and fire hazards can expose employees and customers to H&S risks on a daily basis.
That’s why motor businesses need Irwell’s liability insurance that includes a health and safety compliance review tailored to the unique risks of each business.
The commercial transportation sector is essential to so many industries, including manufacturing, construction and retail.
But transporting raw materials and finished products to and from facilities, tracking shipments and delivering goods to customers can come with many unique health and safety risks.
Operating potentially dangerous loading and unloading equipment, driving haulage fleets that can involve long and tiring journeys can expose employees and the general public to H&S risks on a daily basis.
That’s why logistics businesses need Irwell’s liability insurance that includes a health and safety compliance review tailored to the unique risks of each business.
World Day for Safety and Health at Work is observed each year on 28 April. The day helps to raise awareness about the prevention of occupational accidents and work-related ill-health.
All employers have a legal and moral duty to provide safe, secure and healthy working environments. However, for many businesses, the first time they find out if they are non-compliant with health and safety legislation is when it’s too late – following an accident, a claim or an enforcement visit.
The most recent HSE statistics for 2022/23 are cause for concern:
135 workers and 68 members of the public killed in work-related accidents
1.8 million people suffering from a work-related illness, of which
875,000 workers suffering work-related stress, depression or anxiety
473,000 workers suffering from a work-related musculoskeletal disorder
561,000 people sustained an injury at work
35.2 million working days lost due to work-related illness and workplace injury
£20.7 billion estimated cost of injuries and ill health from working conditions
Health and safety matters
The construction and agriculture, forestry and fishing sectors account for the greatest number of workers killed in fatal accidents each year.
The most common causes of fatal accidents were falls from a height, hit by a moving, flying or falling object, and struck by moving vehicle. These accounted for around two-thirds of fatal injuries to workers and are dominated by male workers (96%) with 25% aged 60 and over.
Preventing or tackling work-related stress and injury can provide significant benefits to employers and employees. Improving employee safety, health, wellbeing and overall work experience leads to increased productivity, decreased absenteeism and reduced staff turnover.
Prevention is better than cure
That’s why Irwell’s liability insurance policies include SafeCheck – a health and safety compliance assessment tailored to the unique needs of each business.
SafeCheck only takes around an hour to help:
ensure the safety of employees, customers and the general public
meet H&Scompliance and duty of care obligations
reduce business risk of fines, claims and prosecutions
Why nature-positive insurance policies make good business sense
Did you know that $44 trillion of annual economic value generation – that’s half of the global GDP – is directly dependent on nature?
But nature loss caused by climate change, land development, pollution, over exploitation of natural resources and declining biodiversity are already exposing businesses to many unprecedented risks.
That’s why the ABI is committed to raising awareness of nature related risks and opportunities for the insurance sector.
The facts make depressing reading. There has been a 70% drop in global wildlife populations since 1970 and 85% of global wetlands have disappeared. Here in the UK, a quarter of mammals are at risk of extinction and 84% of our rivers are in poor ecological health. The UK ranks in the bottom 10% of countries for biodiversity which is a shameful reflection of our environmental neglect.
This spiralling trajectory cannot continue. Nature provides food, water, essential raw materials and a natural ‘office’ environment in which businesses can thrive.
Mother nature means business
It’s not just the obvious travel and tourism industry that relies on mother nature to provide a monetisable landscape. From private landlords to manufacturing, food production, retail and leisure, nature helps protect all business sectors from extreme weather conditions. Flooding, freezing and heatwaves can all present risks to business operations, employees or members of the public. Not to mention the associated costs of insuring, protecting and repairing the fallout of natural weather extremes.
We are all well versed on the positive impact of nature on physical and mental wellbeing. But it’s invaluable, and often invisible contribution to business should never be underestimated. Nature is responsible for providing the raw materials required to keep the construction industry building, car manufacturers creating, restaurants reinventing recipes and hairdressers highlighting.
Natural liability insurance
The UK’s ambitious net-zero targets cannot be achieved with man-made innovation, legislation and new technologies alone. We also need nature to provide natural resilience by absorbing carbon from the atmosphere which will help reduce the number of nature-related risks.
Aligning nature protection and business strategy is not simple – it involves a range of sometimes complex and competing interests.
That’s why many businesses have not found it easy to understand and embrace their reliance on nature when it comes to developing their business risks assessments.
As nature-related claims frequency and costs are rising, how can business reduce their exposure to these risks?
The ABI has produced a Guide to Action on Nature. Here is a summary of 10 recommendations for conducting good, green business.
1. Learn best practice from early adopters within your sector
2. Identify which external organisations can give you relevant support
3. Incentivise nature positive behaviours with employees, suppliers, clients and customers
4. Finance through carbon credits and offsetting
5. Extend existing net zero strategies into nature positive strategies
6. Scale up investment in nature-positive businesses or projects
7. Identify short- and long-term priorities and set targets to reduce nature-damaging activities
8. Set up internal groups who will champion the guiding principles and accountability of nature initiatives
9. Sustainable investments in green bonds, high integrity nature-positive credits and voluntary carbon offsetting markets
10. Revisit plans and ambition levels based on changing landscapes – natural and governmental
How can insurers promote nature-positive policies?
Nature loss is one of the most critical issues facing our planet. It’s shocking decline not only threatens our entire eco-system, but it will also harm business and economic growth. No sector is immune from the impact. But every sector can help in reversing nature loss.
The insurance sector can also do its bit to support nature-positive initiatives. Here are just some considerations that could make a world of difference – to profits and the planet.
1. Incentivise insurance customers to take actions that reduce nature risk
2. Share advice on nature adaptation resilience such as how to protect buildings from flooding
3. Green business insurance innovation – from ecosystem insurance, specialised cover for environmentally significant sites and eco-businesses to insurance for providers and users of nature-positive credits and governmental grants
4. Champion underwriting specialists in sustainable projects and nature-nurturing businesses
5. Incorporate nature and environmental factors into business risk assessments
6. Join membership groups such as the ABI who will provide practical guidance on implementing ‘nature positive’ behaviours and business strategies. Their environmental fraud tackling expertise also helps address rural risks and crime such as illegal deforestation.
Nature-nurturing businesses and nature-positive policies make good business sense – morally, socially and financially. That’s why environmental risk mitigation and planet saving policies will undoubtedly be a priority on many boardroom agendas. April 2024
Do you remember back in the 70s when insurance was sold by doorstep salesmen working on commission? And policy payments were collected fortnightly – in cash? I do. My mum kept a tin of spare change and a little notebook and pencil to keep a record of what she’d paid.
How times have changed. Digitisation is taking over the insurance sector faster than streaming replaced Betamax.
It’s no secret that outdated tech and slow new tech adoption have lingered in the insurance industry. But even the most risk-averse and traditional insurers are under pressure to reassess their business models and take the leap into digital transformation.
Tech takes over tradition
A recent global survey found that 99% of insurance organisations plan to update their technology systems this year including their broker and MGA platforms and claims, renewals and policy administration systems. Some are even introducing drones into their risk assessment armoury.
This transformation is being accelerated by the impending requirements Consumer Duty compliance requirements and Lloyd’s Blueprint 2.0. This digital strategy aims to deliver better, faster, and cheaper solutions to help all insurance participants navigate the complex and fast changing risk landscape.
Your AI claims adviser will be with you shortly
When it comes to customer experiences and claims handling, the bar continues to be set high. From paperless, peopleless claims filed online to payouts and policies issued in minutes.
The switched-on customer of 2024 wants speedy, seamless, streamlined and stress-free processes. They also demand user-friendly portals, on-the-go apps and access to 24/7 support – delivered how the customers need it. Whether that be with a ‘real’ person, a chatbot or a website with accessibility adjustments.
Claims departments are often the butt of insurance customer complaints. It can be the only time a customer interacts with their broker or insurance provider. Insurers that don’t embrace technology to refine and speed up their claims process may risk losing even their most loyal customers.
In 2023, Lemonade shook up the insurance industry by settling a claim in a record-breaking two seconds. Although that’s not a realistic benchmark for claims handling best practice, it demonstrates what can be done with the wonder of AI.
AI take-over
Last year, ChatGPT was the fastest-growing consumer software application in history. It now has over 100 million users prompting the launch of several competing products as businesses reaped the rewards of what AI could do – and learned from what it couldn’t.
These products will continue to influence how the insurance sector operates and will utilise their capabilities for underwriting, claims handling, and new product development.
A SaaSy business
Legacy insurance solutions were designed to be off-the-shelf, one-size-fits-all but now thanks to the trajectory of SaaS software, bespoke solutions that suit the needs of very specific cohorts and niche businesses are becoming more mainstream.
Companies that gather and interrogate data to produce risk assessments and actionable evidence are growing in number. Emerging technology plays a big part in delivering these insights to insurers, brokers and MGAs. Geospatial images and drone footage can prove to be invaluable in many high-risk, high-profile claims cases.
So, whether you love, loathe or tolerate tech, it is here for the long-haul, so best keep up.
