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Insurance Business | 25 Jun 2014, 08:21 AM Agree 0
Brokers say some insurers are increasing premiums by as much as 25% at renewal regardless of policyholders' claims histories.
  • Jack | 25 Jun 2014, 10:12 AM Agree 0
    Youve got to love it! They buy the business one year and then jack it up. But when it comes to their Direct arm, they buy the business and then less than 5% increases. If the direct client then rings them, they discount it more again!
  • Leigh-Anne Byrom | 25 Jun 2014, 11:19 AM Agree 0
    Firstly & foremost is policy coverage… premiums may be cheaper but there is almost always a reason for that…
    Yes the market is extremely soft at the moment & everyone is after the same business, but I think the most import thing is consistency from insurers, nobody wants to see a risk written at an irresponsible premium & no broker wants to have to remarket every 12 months because of this…
    Why are we driving our own market down?
  • J | 26 Jun 2014, 10:29 AM Agree 0
    The comments in the article appear to be localised and not indicative of all areas of the market - Just taking Financial Lines as an example and looking at NCPD data just released - every year since 2004 has seen a significant decrease in average premium taking it to a cumulative reduction of 54% over the last 10 years. Its hard to see how this is a systemic issue, looks to be more localised to perhaps one or two underwriters in certain lines - or perhaps account/industry specific.

    Although one factor which shoudl also be considered is the increasing cost of acquisition for underwriters with many brokers now requesting 30% commission (or higher for the larger brokers), whereas 10 years ago this was 15% (or net). This additional expense has to be factored in to the premium calculations.

    If brokers are asking for 15% more commission (doubled in 10 years) it is basic economics for underwriters to be requiring a premium increase just to maintain their expiring position on a net basis.
  • John duggan - AIS insurance | 01 Jul 2014, 02:53 PM Agree 0
    I would like to compliment J on the thesis. As soon as he or she started referring to NCPD data, I got dizzy ? However interested in knowing where you can get 30% comission J - please contact John from AIS Insurance
  • John Elliott | 01 Jul 2014, 07:29 PM Agree 0
    Yes J my comments were indeed not based at the industry on a whole. It is in certain lines and with certain underwriters. There are many that do not conduct this style of client acquisition.

    I am also curious about this 30% can you cc me in on the email to John from AIS?
  • J | 01 Jul 2014, 08:08 PM Agree 0
    Hi John,
    Thanks for your comments above. Unfortunately I think your comments are indicative of the state of the general insurance industry today. Many brokers when confronted with cold hard facts that some lines are unsustainable at current levels (industry stats dont lie) they tune out and focus on where they can move a client to get more money, rather than working with underwriters to bring the class back to profitability. As for where you can get 30%+ try the International Insurers - some of them are still largely exhibiting traits of top line underwriting and offerring higher commissions for volume
  • John duggan - AIS insurance | 02 Jul 2014, 09:14 AM Agree 0
    J you missing one very important point about the Insurance Broker, our mandate & legal obligation under our licence is to act in the best interest of the client & not the UW. If you can get this changed & 30% commission for me, I am with you 100%. Sounds like John Elliott will follow - John AIS Insurance
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