Index linking is an adjustment applied by insurers to insurance policies, designed to protect the sum insured against changes in the economic environment, such as inflation. This ensures that your customers remain adequately covered, even as the cost of living rises and asset values change.
While this adjustment is beneficial, it can sometimes catch policyholders by surprise – particularly when they learn that they are responsible for covering a percentage of any claim due to their asset not being insured for its full value.
Although commonly associated with buildings insurance, index linking isn’t limited to just that. It also applies . . .
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