In the Pacific Region (where Australia is the largest market), Commercial Insurance Premiums have increased on average 18.8% in the third quarter according to the Global Insurance Market Index.
As the market continues to harden and Underwriters pull out of certain classes of insurance, the Industry has seen a continuation of upward pricing pressures.
The Pacific region had the largest composited pricing increase which has continued for almost three years.
Renewal pricing showed an average 7.8% rise, and in particular the pricing for Financial and Professional Liability lines rose 27.5% in the region.
Underwriting profitability remains the key performance metric as Insurers continue to focus on good performing and risk managed businesses. The claims environment has led to a number of Insurers exiting the marketplace, whilst others are taking on firmer position on price, capacity, terms and retentions.
Queensland has been the most impacted state, particularly in respect of property insurance due to the frequency and cost of weather related claims, with increases in the vicinity of 10-20%.
Our expectation is that 2020 will likely be very similar.
Simply reviewing and renewing your insurance without any consideration to market conditions could open you up to significant cost increases and reductions in cover.
Citycover has strong Underwriting relationships and can negotiate good outcomes for our clients. More importantly we will work with you to identify and implement risk management strategies to assist in reducing rate increases and to improve coverage.