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Insurance market update for the food and drink sector

Q4, 2021

November 25, 2021

This overview summarises insurers’ appetite and capacity, class by class, along with the impact of these on rating levels and premiums.

The insurance market continues to be challenging, particularly for certain classes of business and for specific sub-sectors of the food and drink industry, but premium growth driven by the rating increases applied in 2020 has improved insurers’ expense ratios. Market conditions have generally settled somewhat, following the turbulent environment of 2020, with the exceptions set out below.

Insurers’ 2021 results benefitted from a slow-down in attritional losses, particularly in respect of employers’ liability and motor fleet, as lockdown measures impacting wholesalers, distributors and food service providers slowed loss activity. A return to normal loss trends is anticipated as restrictions continue to relax and the economy recovers.

Insurers’ growth plans for 2022 continue to envisage positive rate momentum, but at the moment we anticipate the pace of increase to moderate further in the New Year. An important exception to this is those businesses emerging from long-term agreements put in place in very benign soft market conditions and that have not yet been impacted by 2020 changes in market conditions.

Evidence of good practice in terms of sustainability is increasingly influencing stakeholders across the spectrum and this includes insurers. There is a growing appreciation for the symbiotic relationship between companies that perform well on environmental, social, and governance (ESG) metrics and the quality of risk management and claims performance over time. Providing high-quality information around your ESG credentials is important, as it could have a positive impact on risk appetite and pricing.


Market overview

  • Premium increases in 2020 improved insurers’ expense ratios
  • Rate rises are expected to moderate further in 2022, with a couple of exceptions
  • ESG credentials are becoming increasingly important to insurers

Download the full insurance market update to read more.


GB Food and Beverage Leader

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