Brokers say insurers are taking too long to respond when they remarket risks, as the busy renewal month of June approaches. 

As insuranceNEWS.com.au has reported, the independent Insurance Brokers Code Compliance Committee says late renewal notices continue to be the cause of “high numbers” of breaches. 

But brokers say insurers aren’t helping, as they struggle to keep up with the volume of work in the hard market. 

When prices are rising, more policies are remarketed at renewal time as clients react to sharp premium increases. 

“There is no obligation to remarket,” Hunter Broking Group MD Josh Ryan said. 

“If the cover is good and the premium is competitive then there’s no need, and insurers can get sick of seeing the same risks year after year. But if the premium is going up 20% then you can’t just roll it over. 

“Brokers are remarketing a lot more as prices are going up and the whole industry is slow and behind the timeframes  

“Insurers are not responding for one to three weeks. It is so slow on their end that I can understand why some brokers might breach requirements.” 

Another broker says there is too much pressure to remarket at times. 

“Speaking to underwriters they’re flooded with quotes and they can't keep up,” he said.  

“Speaking to colleagues at the coal face and we’re swamped with renewal remarkets that in many cases should be left with holding insurers for longer than a mere 12 months.” 

McLardy McShane Director Vishal Kapoor says insurers are “absolutely” taking longer than in the past to respond on renewals and remarketing inquiries. 

“Not only is the renewal and remarketing much harder for brokers to do, but when a claim happens, something that is simple is taking upwards of two weeks,” he says. “We are constantly, constantly chasing up.” 

Following the recent catastrophes insurers are stretched, he says. 

“It is like a perfect storm. There are too many events and not enough staff.” 

MGA MD Paul George agrees delays are common. 

“It’s tough for brokers, and insurers are seeing a lot more remarketing going on these days,” he said. 

“But I’m not concerned about things going past the due date. Brokers have been getting renewals started earlier.”