The National Insurance Brokers Association's (NIBA) half-yearly market survey has found that most commercial premiums are continuing to rise, with brokers expressing concern at the low number of insurers prepared to do business and perceptions of unjustified rises.

The survey, which was released to the media last week, detailed the experiences of 30 medium and large brokerages during the first half of the year, culminating in the traditional June renewals period.

Global pressures are to blame for most of the problems being experienced in the local market, according to NIBA CEO Noel Pettersen. Brokers are aware of the causes of the problem, but find it “almost impossible” to explain some underwriting decisions, he said. “In some situations, brokers don’t believe the prices reflect the level of risk.”

The survey of 30 medium and large brokerages found some stability returning to business interruption premiums, but liability premiums in particular continued to attract steep rises. Professional indemnity was the hardest hit during the June renewals, with 42% of policies rising by more than 110%.

On a “hardness scale” of 1 to 10, 34% of the brokers surveyed rated the market at 8.

Mr Pettersen said the amount of business being written offshore is particularly noteworthy. “Faced with blanket refusals by local insurers to cover higher-risk businesses at any price, brokers increasingly are taking their business to such markets as Lloyd’s,” he said.

The survey says Lloyd’s wrote $690 million of business in Australia last year – 44% more than the previous-highest year, 2001.