Insurance broker market worth $8.9bn

Insurance broker market worth $8.9bn

Insurance broker market worth $8.9bn

During the final six months of 2011, $8.9 billion in premium was invoiced by general insurance intermediaries, according to the Australian Prudential Regulation Authority (APRA). 

The APRA has released its Intermediated General Insurance Statistics publication which provides an overview of intermediated general insurance business placed with Lloyd’s underwriters, unauthorised foreign insurers (UFIs) and APRA-regulated general insurers. 

The latest edition showed that approximately 45 per cent of the $15.2 billion of direct premium written by APRA-regulated general insurers in this period was placed by intermediaries. 

The APRA revealed that there are 1,535 intermediaries licensed to conduct general insurance business in Australia and of these, 864 intermediaries, or 56 per cent, placed business directly with underwriters. 

Of those brokers dealing directly with underwriters, 97 percent of them placed business with APRA-authorised general insurers, 201 intermediaries (23 per cent) placed business with Lloyd's underwriters and 63 intermediaries (7 per cent) placed business with unauthorised foreign insurers (UFIs). 

The main locations of the UFIs where business was placed during this period were the United Kingdom, Singapore and Bermuda. Australian policyholders used UFIs to protect a variety of risks, including commercial property, marine and aviation, and public and product liability. 

Commercial property, with 63 per cent of the total business placed with UFIs, was the largest class of business where UFIs were used during the period.