Home insurers could see a rise in premiums as risk shifts from commercial property to household insurance, according to new research from GlobalData.
In light of a rise in remote working during lockdown, home insurance policies can fully compensate a claimant, but policyholders may have to amend their cover once the lockdown is lifted, the group warns.
It added that working from home could increase the risk at a property due to expensive equipment being stored there, as well as an increased theft or liability risk.
GlobalData analyst, Yasha Kuruvilla,said: “On the other hand, businesses will not need as much office space and will have fewer contents on their premises, reducing the premiums on commercial property policies.”
He added: “This shifts risk away from commercial property towards home insurance, and premiums generated in the two business lines will need to be adjusted accordingly.”
According to its research, GlobalData said that Aviva, AXA, Zurich, RSA and NFU Mutual all have strong market positions in the UK in both the household and commercial property markets, placing them in a “strong position” to capitalize on the shift in premiums.
Lloyds Banking Group was found to be the second largest underwriter of household insurance and “stands to benefit the most from a shift in premiums away from the commercial property sector”.
However, Allianz’s “stronger position” in commercial property insurance may “result in it taking more of a hit”, according to the group.