IAG and QBE are talking up premium increases, but speculation still remains over exactly how high the rises might be.

IAG says increases could average anywhere between 5-10% across all portfolios, while QBE has declined to specify amounts, saying only that any rises will be “substantial”.

QBE last week warned investors of major increases at a market update briefing that all catastrophe-affected primary and reinsurance portfolios face mark-ups.

“Substantial premium rate increases on catastrophe-affected portfolios will assist with the second half,” CEO Frank O’Halloran said.

IAG CFO Nick Hawkins told an investor briefing last week that although reinsurance rates are expected to increase following the growing number of catastrophe events, he couldn’t speculate what the reinsurance rise would be.

He says the insurer’s main catastrophe reinsurance program will not be up for renewal until January 1 next year, making it hard to put a figure on any increases.

However, Mr Hawkins did say that IAG will counter any reinsurance rises by phasing in rate increases across most businesses.

“[Increases] have been skewed more towards property classes rather than motor and other classes,” IAG spokesman Angus Trigg told insuranceNEWS.com.au.

A QBE spokesman said the insurer has no further comments on proposed rate increases at this time.