The Australian reinsurance market remains very much in buyers’ favour despite the string of natural disasters that hit the Asia-Pacific region in the last few months, reinsurance broker Guy Carpenter says.
Unless a “really big” Australian catastrophe hits, it’s unlikely the upcoming January renewal season will produce a price breakthrough for reinsurers.
In Australia it has been a relatively benign catastrophe season so far. The last major natural disaster to hit was Cyclone Debbie last year, leaving insurers with a bill of nearly $1.78 billion and making it the second most costly storm in the country’s history after Tracy in 1974.
Insurance brokers should not be “tarred with the same brush” as financial services sectors exposed at the Hayne royal commission, the National Insurance Brokers Association (NIBA) says.
In its submission to the policy questions document following last month’s insurance hearings, NIBA draws attention to the small number of complaints about brokers, and the lack of regulator concern about their conduct.
Figures from the Financial Ombudsman Service (FOS) show that out of 8603 general insurance complaints last financial year, only 181 related to brokers.
“FOS has not indicated to NIBA that it has any significant concerns with insurance broker conduct or compl...
General insurance should remain exempt from the ban on conflicted remuneration, the National Insurance Brokers Association (NIBA) has told the Hayne royal commission.
Whether monetary and non-monetary benefits given in relation to general insurance should remain exempt is among issues raised in the commission’s policy questions document following last month’s hearings on insurance.
“NIBA’s response is yes,” the association says in a submission. “NIBA is strongly of the view there has been nothing identified in the hearings or otherwise regarding insurance broker conduct that would reasonably support a recommended change from the exemption as it applies t...
A Victorian scheme to remove dangerous fire-prone cladding that covers hundreds of apartment buildings won’t have an immediate impact on strata premiums, according to a strata insurance expert.
But that situation may change after the cladding is replaced, Strata Community Insurance MD Paul Keating says.
Commenting on the Victorian Government’s tripartite loan scheme to help strata owners pay for removal of the cladding, he says owners’ hopes for an immediate reduction in premiums are unlikely to be met “until the risk has been mitigated, reduced or lowered”.
“Until the rectification actually has taken place the risk is still not reduced.”
The areas of Australia most likely to suffer a serious earthquake were laid bare today in the first update to the National Seismic Hazard Assessment (NSHA) for six years.
Geoscience Australia says WA’s Wheatbelt region and Gippsland in Victoria are prone to the heaviest quakes in the country.
Its latest report provides information to government agencies and regulators, “so buildings and infrastructure design standards can be updated to mitigate the impact of strong earthquake ground shaking”.
“Although we cannot predict the exact day, time and place of a large, damaging earthquake, we can apply best practice and evidence-based science to make sure communi...