Insurers have taken a rational approach to a bevy of natural catastrophes this year in setting June 30 renewals, according to insurance brokers. Although some classes have taken big premium rises, most say renewals have generally been restricted to less than 10%.

insuranceNEWS.com.au contacted a number of brokers and authorised representatives across the country this morning and found commercial insurance rates have remained generally stable, with increases limited to 5-10%.

“Price depends on the type of company and business, but on average they are up about 10%,” Melbourne-based Bricher Insurance Brokers MD Glenn Stevens said.

Competition in most classes is still helping to keep premiums lower than they would otherwise be. At Queensland firm Assurity, director Mark Fewings says although insurers “are certainly trying to push increases through”, discounts are still available.

“Most renewals are coming in at 10% higher, although we have been able to push that back a little bit,” he told insuranceNEWS.com.au.

Stephen Holloway, Account Manager at AIIB Insurance Brokers in Parramatta, agrees.

“There is just so much capacity out there in the marketplace that the more influential underwriters are not in a position to exert a lot of market pressure, because there are plenty that will take it off their hands.”

Insurance Advisernet Australia authorised representative Ian Ogden says property and commercial strata business are among the hardest-hit lines, with price rises of between 10-30%.

“With Ace pulling out of body corporate cover, that’s left the other players 20-30% up on what Ace was,” Broadbeach-based Mr Ogden said. “A lot of it is also to do with the major claims the industry faced earlier this year. Having to go to your reinsurer four times in three weeks wouldn’t have helped.”

There is also some evidence of pressure on liability rates, with hikes of between 6-8% common. Brokers talk of a divide between rates on renewal business which are generally higher than new business premiums, where the market remains highly competitive.

IB Insurance Brokers director Geoff Clerke says rates for small business retail policies remain flat, with few rises across his portfolio of NSW clients. Shortland Insurance Brokers authorised representative Murray Christian says premiums are largely “stable” among clients of his Gosford-based business.

Brokers also report few problems in placing risks, with Gold Coast-based Wymark Insurance Brokers director Phil Jarvis reporting plenty of capacity.

Mr Stevens agrees. “We are having little trouble finding homes for good business,” he said. “The only classes that are hard to place are the retail products such as motor and home, which is always going to be the case.”

Mr Fewings says premiums in personal lines have been “all over the place”, with 15-20% rises on some home covers. He says direct online insurers are “competing hard”.