NTIA & NDML Raise Concerns over unsustainable increases in Leisure Insurance Premiums

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NTIA has partnered with NDML insurance brokers to address the issue of escalating insurance premium costs within the leisure sector, with some operators seeing increases of over 100%, the partnership are looking at immediate interventions through guidance.

The partnership will also lobby for a change of narrative, looking to address the current insurance premium cost crisis through a renewed Government Crisis RE Scheme, which would aim to build confidence back with leisure insurers and reduce premiums.


Put simply, a hard market is when insurers start to reduce their capacity for cover, in turn driving up premiums. This can happen for a number of reasons but is often down to an increase in frequency or severity of losses, or regulatory intervention which could make things more difficult for insurers.

So what could that look like? Take flooding for example – over time, the frequency and severity of flooding across the UK has risen steeply. This has led gradually to insurers reducing cover or even withdrawing altogether from offering flood cover.
From a regulatory perspective, the recent Ogden rate change means that pay-outs for personal injury claims have stayed higher than anticipated. Because of this additional cost to the insurer, it means less capacity and additional cost to the policy holder too.

Put simply, a hard market means there is a potential for it to be more difficult to get certain types of cover, and we can expect to see this having a significant impact on premiums that aren’t properly handled, putting more strain on businesses already struggling with soaring costs.

These challenges can be mitigated against, and with proper preparation & support businesses can plan for and keep on top of rising premiums. However as with many of the financial challenges facing businesses, this will become increasingly challenging unless action is taken by the government to protect businesses in our industry.

Michael Kill CEO NTIA Says

“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.”

Simon Mabb MD NDML Insurance says

“To illustrate the issue we are seeing brokers that maybe have a handful of clients in the leisure sector struggle so much to get cover for their leisure clients that they are coming to NDML as the specialist leisure broker and asking us to place the business for them. It is like the perfect storm right now with costs everywhere increasing at a point where many in the sector are just trying to get back on their feet. We are working hard to find new markets and better deals for our clients but the market is very limited. If you are concerned about this issue you need to contact us as early as possible so your business is represented to insurers in the best possible light for the best terms. As they say you can only make a first impression once and this is really important right now.“

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