Major insurer: Hailstorm should have minimal effect on premiums

Major insurer: Hailstorm should have minimal effect on premiums | Insurance Business

Major insurer: Hailstorm should have minimal effect on premiums
IAG has noted that they do not expect the recent Brisbane hailstorm, which has caused more than $800 million of claims to be lodged, to trigger major premiums rises.

Consumers in Brisbane have voiced concern that premiums could face double-digit increases like those following the natural disasters of 2012, including the Brisbane flooding but IAG, which at last count had paid out $140 million in claims, doesn’t see the recent weather system causing a similar up-tick in claims.

Andy Cornish, chief executive of personal insurance, told the Sydney Morning Herald: "I don't see that this event will be sufficient to trigger an upward price movement in insurance costs."

"I don't see it as something that would be sufficient to trigger me to ... indicate [there will be] more than low, single-digit rises for car and home."

The ICA revealed last week that insurances losses stood at $804 million and 86,800 claims had been lodged.

22,00 claims had been lodged under home and contents policies, 4,000 for commercial property and business, 2,800 for commercial motor claims and a staggering 58,000 for domestic motor vehicle claims.