A brief insurance market update
it’s insured and our licensee Australia Broker Network have noticed that Insurance pricing changing in recent times. Increases of between 10 and up to 40% are not uncommon with reduced risk appetite from Insurer’s minimising their losses, meaning some risks or occupations are even being declined. This change follows a state of decline for an extended period of years. We understand insurance pricing is always be subject to a combination of losses from claims and investment returns based on the global economy. The market has been driven by significant competition due to new capital and a relatively benign claims environment.
However, the claims environment changed dramatically in 2017 as natural catastrophes in the second half of the year, including hurricanes Harvey, Irma, Maria, earthquakes in Mexico, fires in California and string of storm and flood events in Australia and Europe, have resulted in significant losses and a drain on capital in the insurance market.