Businesses warned of insurance hikes

The Coyle Hamilton insurance firm has warned businesses to expect significant rises in the cost of insurance due to the worsening economic situation.

In its annual review of the sector, the company said insurers must increase charges because they can no longer rely on making a profit from investing their income to offset underwriting losses.

Coyle Hamilton said the insurance sector has had to suffer rises in the cost of meeting claims and a growing reluctance among individual firms to cover some risks.

The planned increase in premiums for corporate clients has sparked fears that some small businesses may be forced to close.