We’ve avoided adopting the over-used term “perfect storm” to describe the insurance industry’s present situation, but right now I can’t think of a better one.
Insurers are raising premium rates to counter the impact of basement-level interest rates, low investment returns and massive increases in natural disaster payouts, coupled with the near-universal economic crunch caused by the coronavirus. So it’s hardly surprising that affordability is now becoming an issue.
In the insuranceNEWS.com.au Analysis today we look at an Australian Industry Group survey revealing a great deal of member unrest over premiums. It avoids too much criticism by pointing out the need for governments to get involved with positive support programs.
That report is accompanied by a survey of Australian insurance executives, who say they’ll have to reinvent their business models once we’re past the COVID crisis.
There’s a lot of ground to cover in this week’s bulletin, from AGMs to embarrassment at ASIC, to the contentious raising of a dam wall to Munich Re’s warning that the only way back for insurers is – you guessed it – more rate rises.
Published by Insurance News