The Night Time Industries Association (NTIA) has called on the government to intervene over the issue of spiralling insurance premium costs within the leisure sector, with some operators seeing increases of more than 100%.
The NTIA has partnered with NDML insurance brokers to look at immediate interventions through guidance.
According to the NTIA and NDML, a ‘hard-market’, when insurers reduce capacity for turnover and in turn drive up premiums, has meant it could be more difficult to get certain types of cover, having a significant impact on premiums that aren’t properly handled and putting more strain on businesses struggling with soaring costs.
However, the trade body and insurance broker claimed these challenges could be mitigated against with proper preparation and support to enable businesses to plan for and keep on top of rising premiums.
The partnership will also lobby for a change of narrative, looking to address the current insurance premium cost crisis through a renewed government scheme, which would aim to build confidence back with leisure insurers and reduce premiums.
Michael Kill, chief executive of the NTIA, said: “Our industry has paid billions of pounds in insurance premiums to protect their businesses for many years, but during the pandemic many felt they had been let down by insurers in their moment of crisis. We are now facing a cost inflation crisis, from the effects of overseas conflict and domestic policy decisions, which have seen insurance costs in some cases double. This is not sustainable, insurance will require creative intervention from the government to grow confidence in the leisure market and reduce premium costs to an affordable level.”
