Rates showing signs of a rise, says Marsh
The local insurance cycle is showing real signs of turning, according to leading broker Marsh.
Its latest market review says reductions in commercial premiums have slowed and are flat in some cases.
“There are now clear signs that the Australian market is taking a more conservative view as the combined effects of the accelerated nature of our downturn in premium rates, weather-related catastrophe claims and deteriorating investment returns begin to bite at insurers’ results,” the report says.
But it says the December 30 renewals period revealed continuing reductions in property classes of 9%, and 7% among liability lines.
However, financial and professional lines premiums range from a maximum reduction of 5% to increasing in a few cases.
Its latest market review says reductions in commercial premiums have slowed and are flat in some cases.
“There are now clear signs that the Australian market is taking a more conservative view as the combined effects of the accelerated nature of our downturn in premium rates, weather-related catastrophe claims and deteriorating investment returns begin to bite at insurers’ results,” the report says.
But it says the December 30 renewals period revealed continuing reductions in property classes of 9%, and 7% among liability lines.
However, financial and professional lines premiums range from a maximum reduction of 5% to increasing in a few cases.