|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
User Login |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market hardening, say insurance brokersInsurance premiums are continuing to rise gradually in all classes, according to the results of the National Insurance Brokers Association (NIBA) half-yearly market survey. The survey, completed after the June 30 renewals period, shows that 72% of brokers have reported increases in premiums. This compares to 24% who said there had been no change and 4% who said they experienced decreases. NIBA represents 500 insurance broking firms and more than 2600 intermediaries, who handle almost 90% of the commercial insurance transacted in Australia. Brokers handle around $10 billion in premiums annually and place around half of Australia’s total insurance business. Brokers say commercial insurance premiums are “hardening”, with 78% of brokers nominating market hardness on a scale of 1 to 10 – one being softest and 10 being hardest – at between 4 and 7. At the same time last year 73% of brokers thought the same. In personal lines, 93% of the survey respondents put market hardness at between 5 and 8 out of 10. Personal lines results from June last year showed 88% rated market hardness on the same scale. NIBA Chief Executive Noel Pettersen says while the majority of NIBA brokers are reporting reasonable or slight increases across the board, there were exceptions. “Some of the rises for harder-to-place risks and commercial motor are significant,” he said. “This is to be expected in a hardening market where risk is being treated with more caution by insurers.” Mr Pettersen says the majority of brokers (86%) reported domestic premiums rising 1-30%, significantly higher than last year’s figure of 70%. “It is hardly surprising that insurers, in the face of higher claims, falling investment earnings and severe weather events have lifted rates,” he said. Broker feedback suggests the increases imposed on their clients’ premiums were slight (52%), with 15% describing any increase they experienced as “irrational”. Details of NIBA’s June 30 market conditions survey are as follows: Commercial lines – market hardness 78% of survey respondents nominated market hardness for commercial lines on a scale of 1 to 10 at between 4 and 7.
Individual classes:
This year 72% of brokers recorded rises in premiums, but 52% said the rises were “reasonable”. Some 15% recorded “irrational increases”, 14% said insurers were continuing to cut rates to achieve market share.
Specific classes of business were as follows:
Public liability
Business interruption
Directors’ and officers’ liability
Professional indemnity
Business pack
Property
Commercial motor
Product liability
Personal lines
Note: Graphs of individual results can be supplied by emailing niba@mccmedia.com.au
ENDS For further information contact Noel Pettersen on 02 9459 4300 NIBA is an independent industry association representing 500 firms and more than 2600 intermediaries, who handle almost 90% of the commercial insurance transacted in Australia. Brokers play a major role in insurance distribution, handling $10 billion in premiums annually and placing around half of Australia’s total insurance business.
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
