A second major broker has decided the soft market is continuing, with Jardine Lloyd Thompson (JLT) saying there’s little immediate evidence to suggest a sudden market correction.

Last week insuranceNEWS.com.au reported that Aon CEO Steve Nevett believes talk of a hardening market is “wishful thinking”.

In a bulletin to clients, JLT says a number of insurers are “talking up” the market.

It says recovery from the global financial crisis has still not happened, even in Australia, and developments at the end of last year and early this year provide an “interesting insight” into the vagaries of the insurance market cycle.

“Senior management at insurance companies continue to bemoan so-called unsustainable premium levels and poor investment returns and a number are ‘talking-up’ the market quite vociferously, despite a number of companies posting strong results,” JLT says.

“Cynically, it is apparent there exists a clear distinction between the desire and rhetoric of management and the will or ability of the underwriters to actually enforce it.”

JLT says the financial crisis has implications for the workers’ compensation market, with employees more likely to lodge claims due to fear of redundancy, extended claim durations to ensure an income stream and workforce downsizing leading to increased stress for remaining employees and a higher risk of injuries.