Overseas syndicates pulling out of MPE space

Overseas syndicates pulling out of MPE space | Insurance Business

Overseas syndicates pulling out of MPE space

A senior figure in the mobile plant and equipment space says overseas players are increasingly pulling out of the Australian market – but, thankfully, local providers are stepping up.

David Kidd is the national portfolio manager of mobile plant at NTI – with 15 years’ experience under his belt, Kidd has seen the sector go through a myriad of shifts and changes.

According to Kidd, one trend which has significantly impacted the sector in recent years is the larger syndicates gaining significant growth, typically on the back of cheap pricing.

However, Kidd also noted that many of those major players are now retreating.

“We’ve seen recently that a lot of the London-based syndicates are starting to pull out of the Australian market,” he told Insurance Business. “We’ve seen similar trends in other areas of insurance, too – big names set up shop and look very impressive initially.”  

While clients flock to low premiums, Kidd says the pricing models were simply unsustainable and, with the market continuing to harden, the large-scale approach adopted by the syndicates has ceased to be a viable option. 

Still, Kidd is confident in the ability of local organisations to step into the role and take their place.  

“Clients seem to be keen to deal with brokers and insurers who are local, and on the ground,” he said. “They feel as though they’re more likely to understand the challenges they’re facing day to day.”