S P E C I A L F E ATURE Some insurers report a high ratio of claims for moving shipments dramatically in the coming years, with the arrival of new products and technology. MARGINS ARE LOW RENE VAN VALEN, GENERAL MANAGER FOR INTERNATIONAL MOVES AT VAN DER ENT GROUP Rene van Valen, General Manager for international moves at Van Der Ent Group, a family-owned moving company, admits that insurance can be a dicult topic for movers. But he is pleased that FIDI Netherlands is keeping the issue on the agenda. For the majority of FIDI members, it is becoming more and more dicult (to arrange insurance), says Van Valen. There are now fewer than 10 insurance companies in the world big corporations that provide a wide range of insurance products. They (the insurers) are starting to dislike insuring HHG moves, claims Van Valen. The margins are low, and they consider it a hassle. He believes the issue has previously been discussed by FIDI movers in other markets. But now in the Netherlands, insurance is on movers minds. They are a bit worried about it. Ultimately, if the big five to seven companies who are willing to insure HHG moves say it is not worthwhile (to do this) any more... as an industry we have a huge problem. Van Valen says he would be keen to see details of insurance claims ratios which insurers claim have been rising as for our company, claims are down. He would like the FIDI oce to provide in-depth analysis and statistics regarding insurance claims. If we can prove FIDI companies are better that we ANOTHER PERSPECTIVE By Malcolm Pearson, Managing Director, Reason Global As specialist brokers, we were aware of the thematic review of removal and storage insurance products that took place in 2018 via Lloyds of London. This specific thematic review was carried out because of previous wider reviews performed during the 2015 to 2017 period. During these wider reviews, storage and removal insurance products were identified as a specific area of interest. As a general rule with these types of matters, the insurance market as a whole will follow the lead set by Lloyds. What has happened during that same timeframe of 2015 to date is a general hardening of insurance markets and a far greater focus on profitability by insurers. The reality is that, for an extended period, storage and removal insurance products have carried reasonably 44 FF300 DecJan21 pp42-45 Feature.indd 44 high loss ratios, in comparison to other lines of business. This shows the value of the product to the consumer in that claims were dealt with fairly and cover is wide-ranging. It has, however, led to insurers looking at their profitability levels. This has an impact on moving companies, but this hardening of the market was due for insurers to continue to write this business at an acceptable level of profitability. We remain confident that the product oers value not only to the consumer and insurers, but also to moving companies themselves. Some insurers will be willing to oer support, but others have chosen to leave this market completely. The focus moving forward on risk management will need to be greater than ever in a hardening market. WW W. F I D I FOC U S . OR G 24/11/2020 11:22