There’s too much capacity in the Australian general insurance market, with a proliferation of underwriting agencies who don’t invest in the industry.

That’s the view of Zurich Australia GM General Insurance Shane Doyle in a review of the past year for the market.

Mr Doyle, who joined Zurich in February from AIG UK, says he questions the belief that over-capacity in the market is good for the consumer.

“It concerns me that most underwriting agencies here are not properly investing in the industry; not investing in the development of talent; and not investing in developing a good claims network – all to the detriment of the consumer.”

Mr Doyle doesn’t expect to see much change in premiums over the next year, “despite experiencing six catastrophes, including the Melbourne and Perth hailstorms and the devastating earthquake in Christchurch”.

“Catastrophes happen and it’s something we can’t control,” he said. “But I’m surprised there hasn’t been a reaction around pricing from the market on the back of those.

“Generally speaking, the market grows 3-7% year on year. There is nothing that will dramatically increase or decrease the current premium pool, and I don’t think there’ll be a significant rise or fall in the market next year from a premium point of view – although the market needs it.”

Zurich will continue to roll out its new online processing system next year in a move that Mr Doyle says is symptomatic of the organisation’s – and the market’s – push towards improving technology.

“Technology remains at the pointy end of the changes in our industry,” Mr Doyle said. “But we mustn’t forget the high importance that we and consumers should be placing around advice from the broker.

“It would be dangerous for us to get to a situation where the rush towards technology nullifies the advice.”

Calling on the industry to work together to “protect and value the advice given by insurance brokers”, he says the investment in the industry by established insurers “also needs to be acknowledged and valued”.