Chubb will no longer offer its Home product in Australia from March 1, the insurer told its intermediary partners last week in a business update, citing difficult market conditions. 

The decision applies to both renewals and new business, according to a copy of the business update seen by insuranceNEWS.com.au. 

“The product has faced a volatile three-year period, impacted by continued and extreme natural catastrophe events and claims inflation,” the business update says. 

“Despite recent rate adjustments, we have now taken the difficult decision to withdraw the Chubb Home product from the Australian market.” 

insuranceNEWS.com.au has reached out to Chubb for comment. 

Chubb launched the Home product in 2019, targeting mid-net-worth individuals whose sums insured are below the eligibility criteria of its prestige Chubb Masterpiece offering. Masterpiece requires clients to have a building sum insured of more than $1.5 million. 

The insurer says there will be no changes to its Masterpiece offering. 

“As the pioneer of High Net Worth Home & Contents in the Australian market, Chubb remains committed to our Masterpiece business and growth, including continuing to invest in the Chubb and Masterpiece brands through our high profile sponsorship of the Australian Open tennis this coming January,” the business update says. 

Australian Risk Advisers MD Paul Murphy told insuranceNEWS.com.au he is not surprised by Chubb’s decision to withdraw the product. 

“It’s a good product but the last three, four years have been tough for everyone. Many are struggling to make money and it’s a very difficult market at the moment in Australia,” Mr Murphy said, referring to the householders line. 

“On average insurers are paying $200 in claims for every $100 they get in premium. It’s not sustainable.” 

A broker in regional Victoria says Chubb has raised premiums for the Home product by up to 100% over the past year and its risk appetite has been very selective. 

“Anything outside of the metro areas on new business, they basically are not taking it. Their pricing on renewals have increased dramatically, so they won’t be getting new business and they are also losing their existing business,” he told insuranceNEWS.com.au. 

Australian Prudential Regulation Authority (APRA) data shows the houseowners/householders line’s underwriting loss worsened to $205 million in the 12 months to June 30 from $199 million a year earlier.