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Pressure continues to build up for insurers in Victoria

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Insurance companies in Victoria have experienced hard times withstanding the pressure brought by the pandemic, with problems emerging from people invalidating their policies to premium rates that no one seems to be interested in getting.

COVID-19 has brought unprecedented challenges with policyholders getting uneasy about renewals and buying new coverage. Multiple industries and businesses couldn’t escape the wrath, but the providers of said insurance have been hit the hardest.

Insurance experts and policymakers are advising policyholders to remain in contact with their insurers to avoid the possibility of invalidating their policies. One instance is when a house is expected to be unoccupied for more than two months. All the policyholder must do is to inform the insurer about it. With no end in sight for this pandemic, insurance companies are more than willing to extend and reconsider. One such proactive insurance broker is GT Insurance Brokers Pty Ltd.

Arguably the most significant issues that insurance brokers face in these challenging times are business interruption claims along with a significant shift in the behaviour of policyholders. Pressure is building up, no thanks to the national media that seemingly paints a negative image against insurance companies in prospective class action groups. Insurers contend that pandemics like COVID-19 were never intended to be covered.

The 2007 financial crisis pales in comparison to the impact of COVID-19 on the finance and insurance industries. The insurance sector in Victoria and the rest of Australia is doing its best to respond in the most humane way possible. The country has never experienced a pandemic of this magnitude. The pressure to attend to their policyholders is taking its toll on insurance companies.

Like all other companies and organisations, insurance companies have no other choice but to move forward with valuable lessons learned along the way. The most important of these lessons is to expect the unexpected – who would have thought that a pandemic will ravage the world in these modern times?

All industries must acknowledge the demise in their respective sectors, which in turn could pull companies down to their bankruptcy. Nonetheless, it’s not a reason for insurers to inexplicably increase the rates in astronomical figures. At the same time, brokers should go to extra lengths to talk to their clients and take a leaf out of GT Insurance Brokers Pty Ltd book to provide a communicative and transparent business.

Brokers expect for more issues to be revealed once the pandemic is over, with thousands of clients hoping to take advantage of the return to normalcy. The burden of responsibility is carried by the insurance brokers. It’s like how the health care sector was blamed for the lack of PPE equipment and timid response to the pandemic.

There’s still no end in sight for this crisis; it means that brokers are responsible for guarding their policies. The key is to be present at all times when customers and policyholders need assistance. The pandemic is just one of the issues that put this sector in bad shape.