A spate of catastrophes hit Australian general insurers hard during the last financial year, according to a new KPMG report.

Cyclone Marcia, heavy storms in NSW and southeast Queensland, hailstorms in Sydney and Brisbane and bushfires in SA together cost the industry $3.6 billion.

This, combined with increasing competitive pressures, resulted in industry profits dropping 23.6% to $3.74 billion.

Gross written premium was flat at $32.48 billion, and the combined operating ratio deteriorated to 93.5% from 87.9%.

KPMG says the challenging environment is likely to continue, but it highlights a number of key opportunities insurers need to act on.

“Without doubt [insurers] can no longer do ‘more of the same’ and expect to stay ahead,” the report says.

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