The June renewals have seen commercial insurance rates stabilise, but increases are still some way off, according to the majority of brokers surveyed by insuranceNEWS.com.au last week.

The dust is still settling after June 30, but some things are already clear. Rates are no longer plummeting, but neither are they rising – apart from some isolated pockets of business.

Brokers are working harder to achieve growth, trying to attract new clients, push into new areas and offer more client-led solutions.

The crucial question is: have we reached the bottom as far as pricing is concerned?

Most think we’re there or thereabouts, but it’ll be a while yet before we see that long-awaited uptick.

InterRisk MD Phil Kearns told insuranceNEWS.com.au things have been mostly flat across the board.

“Our guys have seen no noticeable decreases,” he said. “From where they were three years ago there has been a massive drop, but it seems to have levelled out a bit.

“We hope [rates have bottomed out]. They certainly haven’t continued to drop.”

Mr Kearns notes increasing demand in financial lines, particularly directors’ and officers’ (D&O), warranty, indemnity and cyber.

“There is a lot work around D&O and a lot of work around cyber coming more to the fore,” he said. “I am sure all brokers around the place would be looking forward to rates starting to creep back up.”

Perth-based Leed Risk Services MD Con Manetas believes the micro and SME sectors are flattening, “with some insurers trying small percentage increases”.

However, professional lines and mid corporate property and casualty are still soft, with reductions available for good-performing accounts.

He says professional lines have declined the most in recent years due to an oversupply of capacity, while construction and motor show signs of hardening.

Mr Manetas predicts it will be another 18 months before we truly hit the bottom, “and it will depend on reinsurance rates increasing”.

However, it is still possible for brokers to grow through the introduction of new products “such as cyber and bespoke solutions for various industries”.

Melbourne-based Insurance House Group MD Jay Fereday told insuranceNEWS.com.au that while some rural markets are stabilising, rates are still heading down overall.

But are they near the bottom?

“We would have thought so, or at least anticipated so with the consolidation of some significant capacity providers,” he said. “However, it would seem that for every consolidation there’s a new market entrant and capacity just isn’t an issue.

“Larger commercial/corporate-style business is super-competitive and newer entrants are having an impact.

“Also, mid-market professional and financial risk business is seeing reductions across the board, save for those accounts with meaningful changes to risk profile.”

Mr Fereday believes it is crucial in the current environment for brokers to focus on client needs and education.

“Gap analysis, limit and structure reviews, helping the client to understand how a policy will respond and advisory services are all key for us.”

PSC Insurance Brokers CEO Rohan Stewart says there has been no “wholesale discounting” and “a little bit more stability” this June.

“It comes back to the loss claims experience on the particular product lines,” he said.

“Business packages and the small SME-style classes, I think there is more optimism there. That is generally a profitable area.

“I think the renewal season has seen a lot more stability in the rates, with less significant downward fluctuations and incremental increases on expiring rates subject to the profitability of the client or the broker’s portfolios.”

But Robert Moir, MD of Parramatta-based WRI Insurance Brokers, told insuranceNEWS.com.au rates are flat at best, and show no signs of increasing.

“I’ve been saying they are at the bottom for five years, and now I’m starting to wonder if they’ll ever come back,” he said. “There is so much capacity out there and insurers are obviously still making money or they wouldn’t be writing the business.”

Brokers will surely welcome stability over the steep declines of previous years.

But when, or even if, rates will start rising again appears to be anyone’s guess.