According to the projections, the market should be showing a few signs of softening. But it’s not. Sunrise Exchange News asked brokers how negotiations over policy renewals are going. There’s little joy.

One NSW broker said he hasn’t seen any sign of premiums slowing down, and renewals are difficult, too. “Right now [rates] aren’t moving and my crystal ball definitely is not working.

“The insurers aren’t budging and it’s making things very hard for the insurance brokers,” he said. “It’s not easy trying to explain to a client why their premium has doubled in less than a year when they haven’t even had a claim. It’s ludicrous.”

Perhaps, but it’s also a fact of life. Slow decision-making on proposals by some insurers over the past couple of years has encouraged brokers to get out there early for June renewals, and plenty of business has already been done. But the news isn’t encouraging for anyone expecting the rates rise to show signs of slowing, brokers said.

And clients aren’t helping. Many are reportedly taking their time with policy renewals this year, and demanding their brokers shop around for cheaper premiums. “They’re going for cheaper, less superior forms of cover to save money,” Paul Donnelly from Paul Donnelly Insurance Brokers said.

“When it comes down to it, a business sometimes has to choose between paying wages or forking out for insurance.” One client’s insurance went from $4000 to $9000 in 12 months. “This man hadn’t filed a claim in seven years.”

Northcoast Insurance Brokers MD Tim Parry says while some clients are experiencing premium increases of 15-20%, others are increasing by more than 100% – “and the situation’s not getting any better”.

Underwriters are taking a “very hit and miss approach”, he said, and quotes can vary by nearly 100%. 

Brokers aren’t immune, either. Mr Parry’s own business cover rose by 100% last year and is expected to rise another 30% this year.