The end of the January renewals period has brought little relief for brokers and their clients. The lack of cover available and the high premium rates offered by insurers still apply in most cases, according to NIBA President and Brisbane broker David Harris.

“Overall there hasn’t been any real easing of the issues felt by those main classes affected, including PI, higher risk property and of course public liability,” he said.

While reinsurers continue to play up the additional capacity coming into the market, Mr Harris said he believes local insurers are not drawing on that capacity. As to whether the planned industry/governments/business talks being organised by Assistant Treasurer Senator Helen Coonan will make any difference to the situation, Mr Harris said: “Only time will tell”. 

Roy Marshall of Grampians Insurance Brokers in Ararat, Victoria, is one of many brokers who is less than optimistic about a softening in the market in the near future. According to Mr Marshall, “the situation is getting worse”. He said that because a lot of risks weren’t correctly defined in the first place, “insurers are still trying to tie up loose ends”.

Brokers have also had a hard time placing business for their clients, he said. For those who cannot place liability business, they are being forced to look to overseas markets or specialist underwriting agencies. 

Adelaide broker John Heath of Webster Hyde Heath said he has detected no sign of a softening in insurers’ attitudes to liability risks. “The criteria are fairly rigid,” he said. “The majority of insurers look carefully at the risk and define what they’ll accept. If they do, they usually do so at a substantial rate.”

For businesses confronted by hefty premium rises, there are few alternatives. “If they don’t accept [the insurers’ rate] they will go out of business,” Mr Heath said. “For many businesses, if they can’t buy liability cover, they can’t take a punt. They either buy or they go out of business.

“Where there are kids involved, you can’t buy public liability insurance. And if you can’t buy it, there are no alternatives.”