Premium rises in the news
Insurable losses relating to catastrophic local weather events topped $4.3 billion in 2011, according to the Insurance Council of Australia. As a result of these extreme weather events and rising reinsurance costs, many insurers have had to make the difficult decision to increase their insurance premiums.
Chief Executive, John Nagle says that while nobody wants to pay more for their insurance, sustainable pricing is vital to the industry’s financial strength and wellbeing, especially during these turbulent economic times.
“While we can’t and won’t speak for the industry, increasing premiums isn’t an easy decision,” says John. “However, insurers need to make sure that they can offer a sustainable business that is capable of supporting Australians facing a range of risks to their homes, businesses and livelihoods.
“The importance of a strong and viable insurer to stand behind you in times of trouble cannot be underestimated.”
John says many Australians mistakenly believe that because they don’t live in Queensland, their premiums shouldn’t be impacted.
“But the extreme weather events haven’t just been isolated to Australia’s north east,” says John. “Residents of Victoria have been faced with events such as the Christmas Day storms, bushfires and floods, while Western Australia has experienced multiple bushfires and a number of extreme storms over the past year. That’s not to mention several severe flood events in northern NSW as recently as a couple of weeks ago.”