Youi has experienced a dip in insurance premiums after almost nine years of continuous growth.
The Sunshine Coast-based insurer’s gross written premiums fell 0.6% to $664 million, according to The Courier Mail.
Accounts from Youi’s parent company Outsurance said: “The Australian general insurance market continues to experience a soft pricing environment where underlying industry profit margins on car and home insurance continues to deteriorate.”
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Outsurance has also warned autonomous cars threaten “the size and the long-term profitability of the insurance market,” so it will look at how new financial technology can assist growth opportunities and development strategies.
Youi’s GWP went backwards in the past six months, allowing major brands like Sydney-based
IAG and Brisbane-based
Suncorp to outperform them for the first time, according to UBS analysts.
UBS described Youi’s comment about a “soft pricing environment” as strange because competitors were pushing through rate increases of 4.9% in motor and 3.3% in home insurance.
Confidence in the Youi brand was pounded following a mis-selling scandal in Australia and New Zealand in 2016. Industry sources told The Courier Mail the insurer faced competitive price pressure to keep customers when renewing policies.
According to the latest accounts, Youi hopes to lift growth by entering the compulsory third-party premium market — it had previously flagged starting in NSW — and commercial insurance.
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