As agencies around Britain report falling numbers of contract placements, insurance is set to feel the effects.
Billings for contract placements has been on the decline since the beginning of last year, and as agencies show this continuing fall throughout 2012, those in the market of contractor insurance are faced with potential problems. Temporary contractors often require a number of safeguards from insurance companies to secure both their position and peace of mind. From contractor insurance to contractor PI insurance, these placements are necessary for insurers to sell products, but if the numbers of placements themselves are waning, this ripple effect could have an impact on how insurers set both prices and packages.
Agency group, The Recruitment and Employment Confederation (REC) commented on the issue, stating that their market surveys have not reported dramatic regressions, and although the fall in billings is visible, growth in permanent placements continues to be maintained. Contractor professional indemnity insurance is a necessary and valued package for almost all contractors in business, and most insurers have a number of products that can be tailor made around a client’s requirements. Cheap PI insurance is a must in an economy facing today’s challenges, and the risks that come with being on a temporary placement highlight the importance of the product.
The drop in numbers of contract placements is said to be the largest since July 2009, and although many argue that it may well be a circumstantial regression, its effects reach further than the contractor agencies.