We all know insurers make huge profits…right? Well maybe they did in the past…but not anymore.
The principle of insurance is pretty simple… the “small” premiums of many, cover the cost of the “large” claims of the few. How the insurance industry achieves that, is by an in-depth understanding of risks, so that insurers can price the risks to cover the expected losses.
Over the last few decades, the risk landscape has shifted dramatically. Common risks are becoming more frequent and intense, while new risks are continually emerging.
The frequency of catastrophic weather events has increased substantially with the total number of natural disasters in the ten years to 2020, equalling the number in the previous 30 years.
Australian insurers profitability in the 2020 financial year was the worst for two decades.
To further exacerbate the problem, insurers look to offset their losses on insurance, by making income on their investments, during the period they hold your money, but again…in the 2020 year, the industry lost $2bn.
The three La Nina years in a row have only added to the insurance industry’s dilemma.
Put your hand up, if you think premiums are going to go down anytime soon?
In the commercial sector, insurers are asking for updated building valuations, to ensure sums insured are adequate, as the cost of building and repair work is blowing out.
For commercial risks, anything seen as higher hazard than “vanilla” are being hit with higher premiums and the requirement for better risk management.
Issues surrounding labour hire risks remain a problem, with workers compensation insurers increasingly seeking recovery under public liability insurance.
At Aviso Broking, we save you time and give you peace of mind by helping you find the right insurance solution to suit your needs. Our team of specialists is here to do the hard yards and help you choose the right insurance solution to suit you, your business and your budget. We know that no two businesses are alike and we can help you to avoid a one-size-fits-all approach. It’s all about getting to know you, understanding the risks you can afford to carry, and protecting you against those you can’t.