The June renewal season was the toughest many brokers can remember. Reports from around the country show the insurers have adopted tough new underwriting guidelines and are being much more selective in the risks they will accept.

Peter Michell, National Operations Manager at the National Insurance Brokers Association, said brokers found the restrictions being imposed by the insurance companies made for a very difficult June. “They’re being tougher in acceptance than we expected, and much more selective than they have been in the past,” he said. “They are not interested in anything different.”

Rates are up an average 20-25%, and liability cover is “much higher than that”, Mr Michell said.

“Lots of risks are very difficult to place. Anyone with a criminal record is almost uninsurable.”

Nor has Lloyd’s taken all the risks on offer, and Australian representative Keith Stern said informal feedback so far indicates that coverholders have been “quite selective”.

“We didn’t want to perpetuate the image of Lloyd’s as an insurer of last resort,” he said. “But despite that, this June was even better than last year.”