Cash in Transit premiums set to fall

by Gill Montia

Story link: Cash in Transit premiums set to fall

Aon is predicting that cash in transit (CIT) premium rates could fall by up to 20% as competition in the market stiffens.

The insurance is needed to cover theft or damage of money or valuables while in storage or in transit and while there has been little change in premium levels in the London market over the past two years, new entrants are challenging the status quo.

According to Aon, the London market provides between 80% and 90% of cover globally and the broker is now advising security companies to focus on the prevention or control of attacks in efforts to secure lower premiums.

Barry Vickery, director of Aon’s fine art and specie team, describes the market as having been stagnant and says there are premium reductions for those companies with good track records and proactive risk management plans.

However, Mr Vickery’s colleague, Daniel Smith, warns that firms need to take the time to explain their risk mitigation measurers to insurers and should be aware of the danger of being offered a policy with so many exclusions that it is unlikely to pay out in the event of a claim.