Premiums are set to rise in 2017
September 26, 2017
Premiums are tipped to rise in 2017 as inflationary pressures take their toll and insurers start to target segments where they see pricing levels as unsustainable.
Additionally the effect of Cyclone Debbie is yet to be determined as insurers finalise costs and the impact of this event on their reinsurance programs.
Household and Motor Vehicle covers, Commercial Motor, large Property Placements and Directors and Officers Insurance are seen as being some of the areas experiencing the most upward pressure.
Intense competition by global insurers chasing markets in which they can profitably invest, is helping to partly offset the upward pricing pressure which is largely being exerted by Australia’s 4 big insurers who are not generating the return that their shareholders are demanding.
Technology and Data is assisting insurers to get better insight into the industries, policy classes, geographic locations and individual policy holders that they think are costing them money. Insurers are using these insights to actively take corrective action to address these losses.
It is always important to work closely with Rivers to ensure that we understand any changes that are taking place in your business. This insight allows us to provide you with Proactive Advice, around the Insurance which you need to consider as business risks change (e.g. the new Data Breach laws).
The good news is Insurers continue to pursue profitable business whilst correcting pricing on unprofitable segments. As such, it has never been more important for us to be talking to you early in the annual renewal process.
If you have a good claims history, early engagement allows us to determine a strategy around how best to represent your account, ensuring that we put our best foot forward. This will give you access to the best outcomes that the insurance market has to offer you.
Similarly, if you, or the industry segment that you are in, have had a poor claims history or have been identified as an area for higher premiums from your existing Insurer, early engagement allows us to work together to determine a strategy around how we can explain what has been done to minimise the likelihood of claims into the future, or why your business is the best of the pack or move your insurance to another Insurer. Again this can assist with ensuring that you are accessing the best outcomes that the insurance market has to offer you.
Ultimately, a key aspect of our role is to assist you with identifying and managing your risks, arranging and placing appropriate insurance coverage on your behalf with high quality insurers AND ensuring that the policies that are put in place will support claims outcomes that meet or exceed your expectations when bad things happen.
If you want to know more about how to manage the changing insurance market please contact us, we are here to help.