Insurance Business forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Insurance Business | 28 Apr 2014, 08:08 AM Agree 0
Intermediaries are supporting insurers’ decisions to increase premiums in certain parts of Australia.
  • Robert Cooper | 28 Apr 2014, 10:56 AM Agree 0
    It is fine for Brokers to justify the higher risk nature of FNQ but many reinsurers are considering all the Queensland Coast high risk these days. The Storm and Tempest claims on the Sunshine Coast and Gold Coast are just as costly. It appears the competition from insurers is the only factor in keeping premiums down in South East Queensland, certainly not the risk.
  • Helena | 28 Apr 2014, 12:33 PM Agree 0
    For me, being able to insure your property, whether it's house or business is a basic need - just have to check out Maslow's hierarchy of needs to see that. I'd love to see the government drop GST and stamp duty on owner occupied property - I mean, we don't pay GST on bread do we? Just because it's an FNQ issue right now, doesn't mean it'll necessarily stay an FNQ issue - it'll be an easy template to apply into other regions and other areas. This is our industry, and in my humble view, we need to be more problem centred & not necessarily so much self centred & we have to be able to work towards being able to look for ways to address this over the long term, across different areas & for many events to come.
  • Scott | 28 Apr 2014, 01:15 PM Agree 0
    The most disappointing result from the collective comments made by Brokers is the lack of accurate knowledge applied to that region.

    I challenge any to define accurately the difference between Category 1 to Category 5 Cyclones. Then specify what real impact each Cyclone Category has to Commercial vs Residential infrastructure within the regions. Also taking into consideration building age and the building regulation applied.

    To simply comment - "they have Cyclones" is just so short sighted. Brokers need to closely monitor and educate themselves on the many works being performed by Councils, along with Government building regulations imposed over the past 2-3 decades. Refer to www.floods.org.au as a starting point.

    Accurate analysis of Loss Ratios to the region, will show recent premium increases are too high and very disproportionate to the actual losses occurring to the region.

    It is very disappointing that as a collective, Commercial and Residential property owners cannot turn to Brokers for support and resistance to the ever-continuing upward trend of premiums.

    Over the past 10 years, I have continued to build a strong portfolio of Commercial and Residential accounts from that region - based from Melbourne. Opportunities are there if Brokers focus on offering accurate support.
  • Mr Curious | 29 Apr 2014, 09:53 AM Agree 0
    Perhaps the enterprising in FNQ should look at setting up a mutual or club and pool their premiums; possibly avoid GST & Stamp Duty and create your own risk management criteria for acceptability. That is if you think that it is sustainable. Buy reinsurance protection as any other primary insurer would. Food for thought.
  • Monty Sheridan | 29 Apr 2014, 11:51 AM Agree 0
    I'm a North Queensland resident, and like Helena have been through several cyclones and the clean up thereof (and still believe the damage is worse on the Southern side).
    I'm still unclear how you mitigate against a cyclone....
    Lets not forget, "NQ" is defined as a region from Rockhampton/Gladstone to Cape York and surrounding Islands, and around 100KM inland from the coast (close enough to around 300,000 square kilometres with a low population density) and while there has been new building work, there is still a disproportionate volume of residential and commercial properties that were built pre-cyclone codes of 1991, or the older codes of 1991-to present.
    There are those clients that get cash settlements for damage, don't repair and then wait for the next cyclone season (and be it at Cat 1 or Cat 5) try reclaiming it again, or those that see insurance as an invetsment and 'need' a return on outgoings.
    Good luck with getting the politicians to surrender income by way of GST or Stamp Duty, or funded mitigation systems (bearing in mind the Qld Government has around $80Bn debt and has a current campaign 'tough choices to make')....
    A government disaster fund is the only practical solution, due to the lack of population (thus lacking funds for own club/pool) and to get insurers buy-in to reduce rates in leiu of pool coverage.
    Yes - something needs to be done, but living here, and seeing the 'code' of some of these buildings, some of which even brokers work from, the 'we're so hard done by' routine is getting rather monotonous in the face of predicable seasonal events.
  • Broker | 02 May 2014, 09:31 AM Agree 0
    You own the asset you need to pay the premium or not have cover...its that simple.


    If you can't pay the premium maybe you need to sell and move to a place that you can afford.

    I know that sounds harsh but that’s the reality. Nth Queensland is a high risk area that has claims so if you want the cover you will have to pay a heft price for it as insurers have shareholders and aren't a charity….the numbers/history shows the losses will occur!

    Another point is why should tax payers not effected by the increased premium costs be forced to pay or be levied to keep the premiums lower?! Are we now a socialist country? You have a choice to live or own a holiday home in these areas so you need to factor in the costs to your budget!

Post a reply