Connect with us


Reinsurance market will see double digit price hike next year



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.

Continue Reading


COP28: Global effort to phase out fossil fuels



World leaders at COP28 have intensified their commitment to combat climate change by embarking on a bold initiative to phase out fossil fuels.

The United Nations climate talks, held in a virtual format due to ongoing pandemic concerns, saw representatives from nearly 200 countries coming together to address the urgent need for action on the climate crisis.

The decision to focus on ending fossil fuel use marks a significant departure from previous climate negotiations.

Countries have traditionally grappled with setting emissions reduction targets, but this year’s conference places a strong emphasis on the need to transition away from the reliance on coal, oil, and natural gas. Experts argue that this shift is critical to limiting global temperature rise and avoiding the most catastrophic effects of climate change.

Key highlights of the COP28 agreement include setting ambitious deadlines for phasing out fossil fuel subsidies, promoting renewable energy sources, and encouraging the development of green technologies.

The conference also established a fund to support developing nations in their transition away from fossil fuels, recognizing that these countries often face the greatest challenges in achieving sustainability.

Continue Reading


Russian police raid Moscow gay clubs



Russian authorities conducted raids on several gay clubs in Moscow, according to reports from various media outlets.

The raids have sent shockwaves through the LGBTQ+ community and have raised concerns about the ongoing crackdown on LGBTQ+ rights in Russia.

Eyewitnesses and clubgoers describe a heavy police presence during the raids, with officers reportedly detaining patrons and staff members.

The reasons behind these raids remain unclear, but they have ignited a fierce debate on social media and within human rights organizations.

International LGBTQ+ rights advocates are calling on the Russian government to address these actions and protect the rights and safety of LGBTQ+ individuals in the country.

The raids have also drawn attention to Russia’s controversial “gay propaganda” law, which has been criticized for its potential to fuel discrimination and violence against LGBTQ+ people.

Continue Reading


UK delays Jeff Zucker’s Telegraph deal for inquiry



The UK government has decided to put a hold on the proposed acquisition of The Telegraph newspaper by media mogul Jeff Zucker’s conglomerate.

According to a recent report, this decision has been made in order to conduct further investigations into potential regulatory concerns surrounding the deal.

The move comes amidst growing concerns over media consolidation and its impact on media diversity and competition.

The government aims to ensure that the acquisition would not result in a concentration of media power that could potentially stifle independent journalism and diverse voices in the industry.

This decision has sparked debates about the balance between media ownership and the preservation of media plurality in the UK. Supporters of the deal argue that it could lead to much-needed investments in The Telegraph, while critics worry about the potential for Zucker’s conglomerate to wield too much influence over the media landscape.

Continue Reading
Live Watch Ticker News Live

Trending Now

Copyright © 2023 The Ticker Company