Premiums rising unevenly
Insurance premiums are rising gradually and unevenly, with the sharpest premium rises in home and contents and private motor insurance, while commercial premium rises have been relatively low due to insurers reacting to a competitive market.
The data was released by members of the National Insurance Brokers Association (NIBA) after the June 30 renewal period.
Leading insurers tipped premiums to rise over the last six months in the face of falling investment and higher claims, but the competition in the marketplace has kept premium rises small.
Commercial premiums are hardening at a faster rate that personal insurance premiums, with the market hardness for commercial premiums sitting at six on a scale of one to 10, up from three out of 10 last year, while personal insurance was stable at six out of 10, up from five last year.
The chief executive of NIBA, Noel Pettersen, commented that the competition in the commercial insurance market would benefit the business community.
“We expect rises will continue to be introduced over the next couple of years at least, but it’s obvious insurers are being cautious in their approach,” he said.
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