Are rising excesses quietly breaking client trust?

Over the past few years, higher excess structures have become increasingly common across short-term insurance.

From an underwriting perspective, the rationale is clear:
Manage risk, reduce frequency of smaller claims, and keep premiums competitive.

But on the ground, a different reality is emerging.

Clients are often opting for higher excesses to make their monthly premiums more affordable. On paper, they remain insured. In practice, however, many are one unexpected event away from financial shortfall they cannot comfortably absorb.

This creates a growing disconnect between being insured and being able to claim effectively.

The real risk sits with the broker.
When a claim occurs and the excess is higher than the client expected (or can afford), the friction doesn’t sit with the insurer alone. It lands squarely on the broker relationship.

From the client’s perspective:

• “I thought I was covered.”
• “Why is this so much out of pocket?”
• “No one explained this to me.”

Even when disclosure were made, the experience still feels like a failure of cover.

The coverage gap no one talks about
Traditional policy structures do not address this gap. They define what is covered, but not whether the client can comfortably access that cover at claim stage.

As excess levels rise, this gap becomes more visible, and more problematic.

A practical way to close the gap
This is where excess protection solutions are starting to play a more important role in the broker toolkit.

By addressing the client’s out-of-pocket exposure at claim stage, there solutions:

• Improve the real-world usability if insurance cover,
• Reduce client dissatisfaction at claims stage,
• Strengthen long-term client retention.

Most importantly, they allow brokers to proactively manage a risk that is otherwise only discovered when it’s too late.

A shift in how value is delivered
There is a broader shift happening in the market. From simply placing cover, to ensuring that cover performs when it matters most.

Solutions like Excess Waivers are not about placing traditional insurance products, but about enhancing them in a way that aligns with current market realities.

Providers such as XS Sure have focused on developing practical, easy-to-implement value added solutions that help brokers bridge this gap without adding complexity to their advice process.

Final thought
As excess structures continue to evolve, brokers who proactively address this exposure will be better positioned to protect both their clients and their relationships.

Because in today’s environment, it’s not just about whether a client is insured; its about whether they can actually afford to claim.