Rates are rising and insurers are imposing tougher conditions on difficult risks as the market enters a new hardening phase.

Brisbane-based Austbrokers Premier director Alan Jones says he is seeing insurers raising premiums 15-20%, particularly for domestic property but also for some commercial premises.

In Perth, EBM Insurance Brokers MD Jeff Adams is seeing domestic rates rise 7-10% and underwriters trying “but not always getting” increases of 3-4% in small commercial – and not much at all for larger risk.

JLT Australia CEO Leo Demer saw few signs of change when he spoke to insuranceNEWS.com.au in March, but last week he said he has seen plenty now, although increases are at present limited to property.

He says underwriters are also looking at deductibles and policy terms, and a client who has had significant losses is going to find the market much less obliging.

JLT is preparing for a tougher market by training staff and working with clients on how to present the best case they can.

“Everyone is going to have to work harder to get deals done,” Mr Demer said.

Suncorp Commercial Insurance CEO Anthony Day says although the market expects rate increases, he does not believe they will be consistent across all business lines.

He says some corporate rates rose 10-15% at the March renewals, “but it wasn’t across the board. I think we are seeing a greater focus on the risk selection side.”

He has not seen much movement in terms of deductibles and other terms, but there are factors other than pricing to take into consideration.

“There is still a lot of capacity in the market and the competition that will always be there will hold back any massive shift,” he told insuranceNEWS.com.au.

Mr Day says there is a general expectation that residential rates will rise given the losses incurred in the natural disasters of recent months, and rates have begun to move across the country.

Also see ANALYSIS