Insurance premiums increased by an average of 6.4% last year, according to research by Aon Australia.

The Australasian Risk Management Benchmarking Survey polled 535 executives and found rates are rising across the board, with a forecast 3% rise again this year.

Wide variations across different lines of insurance business were noted in the survey – from 1.1% in public and product liability lines to 16.9% for professional indemnity.

The average premium rate increase of 6.4% exceeded the 1%-5% increase forecast in last year’s survey.

Aon Australia CEO Steve Nevett told insuranceNEWS.com.au last month that rates will remain competitive, and he says he still believes that is the case despite the survey results.

“The insurance market for 2010 is going to be less volatile than the past year and premium increases are expected to be moderate,” he said.

Mr Nevett believes single-digit reductions on some lines are likely to offset any increases, “resulting in a relatively flat market overall”.

The survey of company executives found QBE remains the most respected insurer, ahead of Vero, Ace, Chubb and Zurich.

Also see ANALYSIS