Technical insurance for companies: why is it important and why does it not get the attention it deserves?

Technical insurance for companies: why is it important and why does it not get the attention it deserves?

According to a report from www.versicherungsbote.de, there is little interest in technical insurance (TV) among experts, even though it is crucial for small and medium-sized companies. Stephan Schmitz from Gothaer Allgemeine Versicherung and Andreas Knittel from HDI have published a specialist book on this topic in which they emphasize the importance of these contracts. They emphasize that at least 80 percent of all companies in Germany have a need for at least one TV division. Nevertheless, these contracts receive little media attention.

Technical insurance covers the entire spectrum of the market and is particularly relevant for companies in sectors such as mechanical engineering, the paper industry and energy production. The industry suffered from dramatic natural events and other major losses in 2021, which led to premium increases and capacity reductions. Nevertheless, TV insurers are pleased about the high investments in renewable energies, which should ensure noticeable premium increases in the next few years.

Current developments such as the Ukraine war and inflation can bring additional risks for companies. Inflation threatens to create gaps in coverage, as insurance premiums generally do not provide for inflation adjustments. Companies should therefore check whether their insurance sums and detention periods are still appropriate.

Cost increases due to inflation and supply chain disruptions will also be seen in repair damage. In the future, insurers could increasingly introduce exclusions for certain risks in order to protect themselves from additional costs. Overall, knowledge in sales and at insurers' headquarters in the TV area is declining, which could bring additional challenges.