Demands of regulation add to industry burden: QBE
The onerous demands of regulators present a significant challenge to insurers in coming years, according to QBE Australia CEO Terry Ibbotson.
Speaking at an Australia and New Zealand Institute of Insurance and Finance seminar in Melbourne last week, Mr Ibbotson said the varying demands of regulators demand a “substantial cost” of the insurance industry.
Mr Ibbotson says regulators expect insurance companies to “provide catch-all policies for everything that is out there”.
Citing QBE’s withdrawal from the professional indemnity market for financial advisers, he said it’s not always possible for insurers to deliver.
“With the failure of developers, and stockbrokers falling over, in that situation what is your likely exposure?” he said. “No one had any idea. So how do you then price a product?”
Mr Ibbotson says governments look to insurers to provide leadership on risk associated with global warming but pay little heed to the industry on issues such as insurance taxes.
“With fire services funding and emergency funding, getting the majority of politicians to see common sense and do something about it is a real challenge,” he said.
Speaking at an Australia and New Zealand Institute of Insurance and Finance seminar in Melbourne last week, Mr Ibbotson said the varying demands of regulators demand a “substantial cost” of the insurance industry.
Mr Ibbotson says regulators expect insurance companies to “provide catch-all policies for everything that is out there”.
Citing QBE’s withdrawal from the professional indemnity market for financial advisers, he said it’s not always possible for insurers to deliver.
“With the failure of developers, and stockbrokers falling over, in that situation what is your likely exposure?” he said. “No one had any idea. So how do you then price a product?”
Mr Ibbotson says governments look to insurers to provide leadership on risk associated with global warming but pay little heed to the industry on issues such as insurance taxes.
“With fire services funding and emergency funding, getting the majority of politicians to see common sense and do something about it is a real challenge,” he said.