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Are your clients unknowingly leaving gaps in their inventory coverage? Stock Throughput (STP) insurance streamlines protection for stock and transit under a single policy, reducing deductibles and exposure risks. Could this game-changing coverage be the key to better protection and cost savings? Read more to find out.

As property insurance prices continue to rise, the stock throughput segment presents opportunities for relief. While insurers limit or reduce capacity for property coverage, particularly in catastrophe-exposed areas, stock throughput offers more flexibility. That pliability is due in large part to a turnaround in the London market following a hard spell propelled by Lloyd’s Decile Ten profit remediation drive that saw some players exit. Now, insureds may be able to obtain coverage at better terms and prices for stock representing a substantial portion of their exposures. However, stock throughput remains a complex marketplace best navigated with the help of skilled and knowledgeable wholesale brokers.

A few weeks ago, the global economy appeared to be on track to prevail against lingering pandemic effects. However, Russia’s recent invasion of Ukraine and mounting sanctions against the country are pushing the needle back, creating new supply chain and logistical problems, especially when it comes to transporting goods near the war zone.

The property market continues to change amid decreased capacity and increased caution among carriers. There is little capacity left among many Lloyds syndicates, and domestic markets are more selective overall—particularly on tougher classes of business. While the first quarter of 2020 may bring some relief on capacity, insureds should expect increased rates, higher deductibles and greater scrutiny from underwriters. Valuations are particularly important along with better data on construction, especially for roofs. In this transitioning market, experienced brokers show their worth in finding the best solutions for clients.