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Reinsurance market will see double digit price hike next year

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Insurers in the nation are expected to continue raising premiums by double digits, despite a year of rapid increases, as ongoing losses in key areas negatively impact their financial standings.

According to KPMG’s latest quarterly update on the insurance sector, gross written premiums rose by 10.2% in the 12 months leading up to March. Underwriting profits also saw a boost, increasing by 12.4% to reach $5.3 billion.

However, these gains were offset by a surge in net claims costs, which were 20.4% higher than the previous quarter and 36.5% higher than the same period last year, totaling $9.17 billion.

KPMG insurance partner Scott Guse told the Australian that he predicts that premiums will continue to rise, with customers facing at least a 10% increase in the coming year.

While commercial lines, particularly property and motor insurance, experienced an overall premium increase of 11.5%, profitability in these areas was supported by the release of reserves for business interruption due to recent court decisions on pandemic policy exclusions, as well as premium hikes.

Despite the overall positive profitability numbers, certain sections of the insurance market face challenges, particularly in motor and home insurance, where losses have grown. Home insurers incurred a loss of $321 million, while household insurance resulted in a $275 million loss in the year leading up to March.

Motor profitability also declined to $408 million, down from $688 million in the previous year.

Insurers have been passing on premium increases of at least 10% to customers, but they are still experiencing losses.

This suggests significant cost increases in the market, including rising reinsurance costs. Reinsurers historically underpriced their coverage, but recent market shifts have led to higher costs for insurers and customers alike.

Insurance companies like IAG and Suncorp have adjusted their reinsurance arrangements to mitigate these rising costs, but ultimately, the expenses are being passed on to customers.

While customers are willing to accept the price increases for now, the industry recognises the need for caution.

Insurers are concerned about the sustainability of the current path, with a major focus on climate change and the importance of advocating for disaster resilience.

The increased frequency and severity of natural disasters globally have put pressure on insurers.

In Australia, losses from recent disasters have led to a worsening insurance environment, both domestically and internationally.

The Insurance Council of Australia emphasises the need to improve mitigation and resilience measures to present a better risk story and prevent further worsening of insurance pricing.

The combination of losses from various catastrophes has reduced the global appetite for reinsurers, resulting in increased insurance costs overall.

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Russia missile strikes force Ukraine nuclear plants offline amid safety fears

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Ukraine’s energy and nuclear safety systems have come under severe strain after a major Russian missile and drone attack struck critical power infrastructure, forcing all nuclear power plants in Kyiv-controlled territory to halt electricity generation and triggering urgent international warnings.

The February 7 assault damaged high-voltage substations supplying nuclear facilities, destabilising the national grid. The International Atomic Energy Agency said the disruption compromised nuclear safety, with one reactor shutting down automatically and others reducing output due to grid instability. IAEA Director General Rafael Grossi called for military restraint, warning of potentially dangerous consequences.

Nuclear terrorism

The attack targeted infrastructure across eight regions as Ukraine faces a deep freeze, with temperatures in Kyiv forecast to fall to minus 19 degrees Celsius. Emergency power outages have been introduced nationwide, while energy companies report extensive damage to thermal power plants.

President Volodymyr Zelensky condemned the strikes as nuclear terrorism and called for a global response. The IAEA also confirmed a recent loss of off-site power at the Chornobyl site, raising concerns that continued attacks on energy infrastructure could increase nuclear risks beyond Ukraine’s borders.


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Trump lifts India tariffs after New Delhi halts Russian oil imports

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President Donald Trump has moved to reshape US trade policy on two major fronts, signing executive orders that both ease tariffs on India and threaten new levies on countries that continue to trade with Iran.

The rollback of tariffs on India follows New Delhi’s commitment to halt imports of Russian oil, a move welcomed by Washington as it seeks to tighten pressure on Moscow’s energy revenues. The decision signals a thaw in trade tensions between the two nations and underscores the administration’s willingness to reward partners that align with US foreign policy priorities.

At the same time, Trump warned that nations maintaining commercial ties with Iran could face fresh US tariffs, escalating economic pressure on Tehran and its trade partners. The move reinforces a hardline strategy aimed at isolating Iran economically, while using trade measures as leverage in broader geopolitical negotiations.

Together, the twin decisions highlight the Trump administration’s increasingly assertive use of tariffs as a diplomatic tool, targeting both allies and adversaries. From the Indo-Pacific to the Middle East, the approach underscores how trade policy is being deployed not just to protect US industries, but to advance America’s strategic interests on the global stage.

#Trump #India #TradePolicy #Tariffs #USIndiaRelations #GlobalTrade #RussiaOil #Ticker


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U.S. ramps up Cuba aid as energy crisis deepens

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The United States has announced an additional $6 million in humanitarian aid for Cuba, bringing total assistance since Hurricane Melissa struck the island in October to $9 million. The new relief package will focus on Cuba’s eastern provinces, including Holguín, Granma, Santiago de Cuba, and Guantánamo, providing staples like rice, beans, pasta, canned tuna, and solar lamps. U.S. officials said embassy staff will monitor distribution to prevent the government from diverting supplies.

The announcement comes amid worsening energy and fuel shortages. Cuba has faced widespread blackouts, leaving millions without electricity in several provinces, while rising food prices and limited fuel supplies have intensified humanitarian pressures. Officials warn that without sufficient oil imports, hospitals, transport, and essential services could be severely affected. The crisis has escalated following U.S. restrictions on Cuba’s oil shipments and Venezuela’s inability to supply fuel, forcing Cuba to turn to Mexico as its primary energy partner.

Humanitarian situation

Cuba’s President Miguel Díaz‑Canel accused the U.S. of imposing an “energy blockade,” while Mexican officials work to deliver fuel without triggering U.S. tariffs. Díaz‑Canel expressed willingness to engage in dialogue but insisted talks must respect Cuba’s sovereignty. U.N. Secretary-General António Guterres has voiced serious concern, warning that the humanitarian situation could deteriorate further if oil supplies remain restricted.

As Cuba struggles to balance disaster recovery with an ongoing energy crisis, the international community faces a delicate challenge: providing humanitarian support while navigating complex geopolitical tensions.


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