Premium increases fail to materialise
Sweeping rate increases being spruiked by local insurers over the past year haven’t happened yet, according to Pacific Premium Funding Chairman Grant Burley.
Mr Burley unveiled figures to intermediaries at NIBA Sundowners briefings last week showing rates have in fact fallen over the past year in all states except NSW and SA.
He told insuranceNEWS.com.au the data to March 30 confirms what premium funders and brokers have known – that there haven’t yet been any significant rate increases.
“While it is clear premiums are not continuing to fall, the data indicates that they have flattened off,” he said. “They are certainly not going down like they were in 2006/07. But they aren’t increasing either.”
“No insurer wants to be the first to put them up.”
Mr Burley says that insurers “must be feeling the pain through changing weather patterns and falling equity markets”.
“But there needs to be some sort of catastrophic event like HIH in 2001 before they will do anything.”
Mr Burley unveiled figures to intermediaries at NIBA Sundowners briefings last week showing rates have in fact fallen over the past year in all states except NSW and SA.
He told insuranceNEWS.com.au the data to March 30 confirms what premium funders and brokers have known – that there haven’t yet been any significant rate increases.
“While it is clear premiums are not continuing to fall, the data indicates that they have flattened off,” he said. “They are certainly not going down like they were in 2006/07. But they aren’t increasing either.”
“No insurer wants to be the first to put them up.”
Mr Burley says that insurers “must be feeling the pain through changing weather patterns and falling equity markets”.
“But there needs to be some sort of catastrophic event like HIH in 2001 before they will do anything.”