Industry heavyweights say Australian insurers are well placed to ride out the storm as the world economy deteriorates, with premium rates set to harden. And they say climate change needs to make its way back onto the industry’s agenda.

QBE Executive GM Intermediary Distribution Colin Fagen told the Insurance Summit conference in Sydney last week he anticipates the market will now harden fairly quickly.

“If we are in recession, affordability is going to be a much bigger issue,” he said. “People will be looking for insurers with stability – that will be very important in the short term.”

Marsh Pacific Region CEO David Bidmead says rates will increase at a time when customers can least afford it.

“It’s hard to have a semblance of comfort when there’s doom and gloom everywhere you look,” he said. “But we need to be thankful for what we have and ride out what are clearly going to be turbulent times.”

Zurich CEO David Smith says Australia’s regulatory regime has proven to be world class and will keep the insurance industry in good stead.

But he says it’s important to ensure climate change is not “wiped off the platform” as concern about the economy heightens. He says the insurance industry has the opportunity to innovate now to capitalise on later economic recovery.

The industry leaders also touched on the underinsurance problem, the need to invest in technology, the liability market and the talent crisis.