Brokers have raised concerns about affordability and underinsurance in a study that suggests more than 35% of clients are downgrading or ceasing personal lines and property coverage.

More than 100 brokers were questioned on the economy, business requirements and client needs for the first Lumley Insurance Benchmark broker survey.

“81%… indicated their clients remained underinsured for personal lines coverage,” Lumley CEO John Nagle said.

“A further 78% of brokers stated their business insurance customers have inadequate cover. This reinforces the need for all Australians to undertake regular reviews of their assets and risks to ensure they are adequately insured.”

Some 76.2% of the brokers surveyed believe the economic environment is average, good or very good, the survey shows.

More than 75% are growing their income and 52.5% have increased the number of clients they have.

Insurance premium increases and falling consumer confidence are the two external issues with the greatest impact on business, while staff retention and structure are the key internal factors.

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