Insurance brokers: Clients seek lower prices and cancel employee benefits

Pressured to cut costs, companies are renegotiating their insurance contracts in order to reduce costs by as much as 30% for some of their policies, say the large brokers. Companies have cut insurance expenses lately, amid reduced activity, with many of them no longer providing employee benefits, such as life and health insurance, which will drive the market down, according to brokers. “I think the insurance market will see a close to 10% decline in euros this year. This comes as no surprise, we know what the economic situation is, what is happening on the market. Many of our clients are trying to save money, including in terms of insurance costs. They are asking for their contracts to be renegotiated and can receive an up to 30% discount on last year’s premiums,” says Cristian Fugaciu, general manager of Marsh, one of the largest brokers on the market, which works exclusively with corporate clients, accounting for the bulk of the insurers’ businesses.