Insurance premiums rise in 2010

Household insurance premiums rose by as much as 30 per cent in the first half of
2010 due to harsh storms and the Victorian bushfires, a survey of insurance brokers
shows.
The National Insurance Brokers Association (NIBA) said a survey of its members
showed most experienced an increase in premiums of between 10 and 30 per cent on
policies such as home and car insurance in the first six months of the year.
NIBA represents about 500 firms and more than 2,600 intermediaries that handle $10
billion in premiums annually and place around half of Australia's total insurance
business.
NIBA chief executive Noel Pettersen said increases in domestic premiums were a
result of a series of natural disasters in the past 18 months.
"These increases were expected following the significant losses underwriters have
experienced," Mr Pettersen said in a statement on Wednesday.
They included claims totalling more than $1 billion for each of the Victorian
bushfires in February 2009 and the severe storms in Melbourne and Perth in March
this year.
Insurance premiums for businesses posted more modest rises, with most brokers
reporting increases of between one and nine per cent on policies such as public
liability, business interruption, commercial property and product liability.
"The modest increases across commercial lines indicate prudent underwriting of risks
over the last 12 months and strong competition amongst underwriters," Mr Pettersen
said.