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Insurance Business | 14 Dec 2015, 01:15 p.m. Agree 0
A major insurer has cited a lower Aussie dollar and weather events as the cause of a dent in their profit margins, prompting a review of HY results.
  • Perception | 14 Dec 2015, 01:36 p.m. Agree 0
    Why does the insurance industry do this to itself ?
    All business owners know that fixed costs of doing business increases every year. Yet we follow these stupid cycles and the clients just keep drilling the industry down for cheaper premiums
  • Curious George | 14 Dec 2015, 01:45 p.m. Agree 0
    Perception - The clients drill the industry down? I think you will find its the lust for market share from both underwriters and brokers that drive the market down and whilst we all know what happens in a soft cycle no one seems to be smart enough to put the brakes on. you can only cut so many costs before things have to change.
  • Perception | 14 Dec 2015, 02:45 p.m. Agree 0
    Curious . Yes you are probably right on every level . But maybe its also up to our industry to have the courage to advise clients that we are not prepared to play the game any more and why do we have to wait for a major disaster for a change in the market. yes its all to do with competition and demand and supply but we are not selling widgets
  • Boomer | 16 Dec 2015, 02:54 p.m. Agree 0
    You guys are quite right but it will be a cold day in Hell before we see that happening. Just takes one irresponsible quote and the wheels fall off. Happened to me a couple of months ago on a major motor fleet account - 4 out of 5 submissions returned with around .10 covering their rate offerings. The remaining one (from a major mainstream insurer) was less than 50% of what the rest of the market was offering. As brokers, we have no choice but to go with that rate - and so the stupidity cycle goes on.
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