Dear Broker

 

We have all seen a rise in inflation both globally and in Ireland as a result of a range of factors including supply chain disruption, Brexit and Covid-19. The war in Ukraine has also contributed to further inflationary pressures and, according to the ERSI Quarterly Economic Summary summer 2022 report, inflation in Ireland and the eurozone area stood at 7.8 per cent and 8.1 per cent respectively in May 2022.  

 

The purpose of this communication is to advise you that we will be increasing our indexation adjustments for specific Material Damage cover sums insured and Liability wages/turnovers on the following Commercial Insurance products - Trademark, Apartment Block, Pub, Property Owners and Retail Warehouse. These increases will be effective for September 2022 renewals on.

 

Indexation adjustments will be made to other Commercial Insurance products, including Shop/Office and our suite of Fast Trade products – Shop, Salon, Office, Surgery, Commercial Property Owners and Residential Property Owners shortly, and a further communication will issue to advise you of the effective date.

 

Increase in Index-Linking Adjustments

We will be increasing our indexation adjustments from +1.5% to +8% for relevant property sums insured and from 0% to +2% for liability wages/turnovers, as detailed in the table below.

Products

Prefix

Relevant Covers and Increases

Trademark, Apartment Block, Pub, Property Owners, Retail Warehouse

UT
  • Property – Buildings, Contents, Stock, (Fire/Perils/All Risks/Stealing), Machines & Equipment and Frozen Foods Sums Insured +8%
  • Employers Liability – Wages +2%
  • Public/Products Liability – Turnovers +2%

 

 

Customers should review their individual policies at renewal

However, this generic approach by Aviva does not take account of the significant differences in profile of each individual customer’s property and liability exposures. For this reason, we would strongly recommend that you continue to review sums insured, wages and turnover figures at each renewal with your customers.

 

We will include an explanatory note with the renewal notices for all customers whose policies are affected by this change. This will also set out the detail, as shown in the table above.

 

If you have any questions about these changes, please contact your Aviva Business Development Manager.

 

Thank you for your ongoing cooperation and support.

 

Yours sincerely,


Stephen McGerr
Sales Director

Aviva Insurance Ireland DAC