So where do we go from here?
A word from Robert Marshall
A 9.9% loss of growth for 2020, 121,000 passed away and still sadly rising, Brexit repercussions, dire weather, no bloody holidays. Is that a light at the end of the tunnel or is it another train crash?
Hope and positivity have regularly been crucified when directions from government seem wanting and confusing to say the very least.
Regularly we are told do not do this or that, but if you can invent a new approach and it’s not in the guide lines just don’t blame us. We are the government and only accept credit for any good news and merely buck pass the bad news to the scientists or to members of the Cabinet who are useless. We can’t say it publically, but it’s always going to be your fault anyway, so why are you complaining?
Some of those, quips may resonate, but what I don’t get is that there is a considered and much hyped opinion, we will strongly bounce back and all will be well.
I know we all get cynical as we get older especially with politics and in a world still full fake news and spin, I want to ask how big will the bounce be? And, have we not been indirectly re-educated through fear to be uber cautious almost of our own shadow.
There has been a increase in savings of £120billion and if half of that was spent on what we may think we need, it would sound great but cause massive shortages and inflation, along with the bounce but then it would crash. We end up with a devaluation of the pound and the interest on the national debt would choke us.
I reckon, and I am no economist, that companies and people in general are more alike than we appreciate and having had a year of relative famine are now too disciplined to think before we spend and question if they really need to. My heart says no but reality says otherwise.
Investing in new machinery when there are no orders for the goods produced, seems irrational even with likely tax breaks on the horizon, and do we want take on more debt when the Covid Loan scheme was too irresistible to ignore and everyone piled in?
Yes, undeniably, millennials will return to pubs and eating out asap, but I suspect the recovery will be much more nuanced and tempered.
If social distancing and mask wearing are to stay until the autumn and the top up vaccines are completed by then, where does that put the economy? Will we still obsessed with who has symptoms or who coughs? Will be have the level of tourists if they are not all vaccinated or say they are Covid negative and supply some document we don’t understand and get waved through because the line t passport control has got too big?
I honestly don’t want to be a party pooper and rain on anyone’s parade, but I think uncertainty is now more prevalent than ever. We have a government who are running out of options and debt at meteoric levels. I feel the enthusiastic rhetoric of good times rings a bit hollow to warrant believing.
We just may have reached a new normal by default, where prudence is now embedded in our subconscious and spending is for special occasions or useful new machinery only.
You may disagree entirely and think I’m off my head and I respect that. And ask what the hell has all this got to do with bloody insurance? Which didn’t have a good reputation before, and Insurers just made it a lot worse after the recent Business Insurance fiasco.
Arrogance always seems to supersede ignorance and it cost the Insurers dearly Do you care? I doubt it, but they will look to recoup the losses with increased premiums However, returning to what’s it got to do with Insurance?
First, it is in a field of its own as there are no alternative products on the market to replace it and yes, everyone can switch if they want to another supplier and save some money, all things being equal. The problem is the lower price you pay, normally means less cover and less value for money.
If you agree with me, we will be cautious of spending for some time. Then you may well agree we will be ever more price conscious and assess value more than ever regardless of increased savings ratios.
We know few if any like buying insurance, and few trust it. All I want to say is that in a world where no one knows what is coming around the corner, we all return to basics for safety and comfort. We feel more in control with and value for money. Insurance is value for money when you look at what you pay against what you may lose without it.
At Trident, we are not afraid to call a spade a spade or say we are not sure about X or Y Insurers administration or claims handling and you may have real problems. We say it how it is, because we owe you the best we can do for you, on every call.
We are, and like being independent, it means we are under no obligation to anyone except our Clients. Sure, we have to respect the terms and conditions of Insurers and work with them. However if those terms handicap you, we look elsewhere for better cover and are always conscious of cost.
Buying insurance just isn’t the same as buying the right insurance.
In cautious times, thinking seriously and deeply comes into its own. And when you need the right priced, best value insurance be it commercial or personal let Trident do the hard work for you.
Please stay safe and be careful out there.
Robert D Marshall