The natural disasters in NSW, Victoria and the UK are unlikely to spur a premium increase in the short term, according to industry analysts.

Australian insurers have heavy exposures to flooding in the Hunter Valley, Gippsland and – in some cases – the UK, raising speculation that they will recover losses through higher premiums.

Suncorp and IAG face losses of $160 million and $169 million respectively for the NSW floods alone.

But analysts surveyed by Sunrise Exchange News yesterday say most insurers will have allowed for the losses in their premiums.

KPMG analyst Andries Terblanche says claims losses from the storms and floods won’t immediately affect premiums but may do so in the long term.

“But what is dawning is the perception in the insurance world that the frequency of these events is increasing – and possibly the severity as well – and that is now being factored into the longer-term pricing,” he said.

Trowbridge Deloitte General Insurance Practice Leader Elaine Collins says losses will have been factored into premium rates. Historically, commercial lines are the first to rise at the bottom of the premium cycle.

“The insurers do price their risk expecting these disasters to happen every now and again, but are these events expected or do they exceed expectations?” she said.

“It’s a question of whether that amount of storm damage was priced into the risk. Events like these seem to take a while to affect prices. If there was going to be an effect on pricing it would be on the commercial lines.”