Read the latest edition of AIR and MEIR as an Interactive e-book

Jan 2021

Australia: Premium prices continue to increase

Source: Asia Insurance Review | Dec 2019

Overall insurance pricing in the third quarter of 2019 in the Pacific region, of which Australia forms the largest market, increased nearly 19%, continuing a trend that began in 2015, says Marsh.
Pacific composite pricing was driven by increases in D&O rates, as well as increases in property rates, says the 3Q2019 Marsh Global Insurance Market Index.
Property insurance pricing increased 18% in the third quarter, the seventh consecutive quarter of year-over-year double-digit increases. Many risks in Australia and New Zealand (CAT or non-CAT), experienced increased pricing in the 10% to 20% range. Increases were observed across many industries (real estate, mining, and downstream energy) as a result of reduced capacity and appetite from major insurers.
Casualty pricing increased 6%, a trend that has continued for the last three years. Competition continued in the casualty market, although pricing increased at a fairly consistent rate compared to prior quarters. Financial and professional liability pricing rose 25% in the third quarter, marking nine straight quarters of double-digit increases. The largest increases were experienced in listed company D&O; it was not uncommon to see increases of 100%. Financial services professional indemnity (PI) experienced increases of a similar magnitude. 
D&O market prices continued to be driven by securities claims. The claims environment has led to a number of insurers exiting the marketplace, with others taking firmer positions on price, capacity, and retentions. A large volume of Australian business is being placed into the London market, where similar firming is evident.
Globally, on average, pricing for property risks increased by 10%; financial and professional lines rose by nearly 14%; and casualty increased by 1%. A 
| Print | Share

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.


Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.