Welcome
Norman’s Note
T
he UK economy has achieved only a fragile recovery from the depths of the coronavirus pandemic, with many business owners still suffering severe hardship.
With a second wave of coronavirus undermining efforts to return to normal, businesses’, households’ and investors’ confidence shaken and little scope for further fiscal stimulus, the UK has a long way to go before output reaches pre-pandemic levels. A broad-based and robust recovery does not appear on the horizon, risks of substantial and long-lasting scarring effects on the economy are once again rising. And we are all managing a level of risk. Even throughout times when there seems little by way of spontaneity, we are surrounded by risk. A simple trip to the supermarket now seems comparatively perilous and fraught with the unknown. For those in the insurance sector, who have built careers from managing risk, the calculations being made now – and the resulting risk appetite – will reverberate widely.
Norman Chambers Managing Director | NACFB
In this issue, we examine the UK insurance sector through the lens of the intermediary community and the SMEs they serve. Market volatility has seen an increase in premiums and a ‘hollowing out’ of cover, all at a time when the safety nets they provide are most likely to be used. Tens of thousands of British businesses are awaiting news from their insurers on how they will respond to a landmark legal ruling on business interruption cover triggered by the coronavirus crisis. With the state-backed loan schemes winding up, another safety net is being folded away. Many SMEs remain on the tightrope above, knowing that another prevailing wind could result in one wobble too many. In the interim, and whilst entrepreneurs battle on, our role in commercial lending remains as vital as at any time since March. Tough times don’t last, tough people do. Britain is moving forward – and we’ll be with you every step.
4 | NACFB