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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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Trump says it was a mistake to exclude Putin as G7 leaders meet

G7 leaders clash with Trump on tariffs while struggling for unity amid the escalating Israel-Iran conflict.

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G7 leaders clash with Trump on tariffs while struggling for unity amid the escalating Israel-Iran conflict.


G7 leaders confront President Trump over rising tariffs and a fragmented global economy.

But unity is also fraying over how to respond to the escalating Israel-Iran conflict, with world powers divided on a path forward.

The summit exposes deep divides at a time of urgent global crisis.

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#G7Summit #TradeWars #TariffTensions #TrumpAtG7 #GlobalDiplomacy #IsraelIranCrisis #CeasefireDebate #WorldLeaders

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Israel targets Iranian state TV in escalating airstrike

Israel’s airstrike on Iranian state TV disrupts live broadcast and damages uranium site, escalating tensions and prompting Iran to seek U.S. intervention for a ceasefire.

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Israel’s airstrike on Iranian state TV disrupts live broadcast and damages uranium site, escalating tensions and prompting Iran to seek U.S. intervention for a ceasefire.


Israel targets Iranian state TV in an airstrike that knocks the network off-air during a live broadcast.

The attack damaged Iran’s uranium enrichment site, sparking further retaliation.

Iran has called on the U.S. to help broker a ceasefire as tensions spiral into dangerous territory.

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#IsraelIran #MiddleEastConflict #IranTVStrike #Airstrike #CeasefireNow #MilitaryEscalation #WarFootage #Geopolitics

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Missiles, retaliation and civilians caught in the Iran-Israel crossfire

Israel-Iran conflict intensifies with airstrikes disrupting broadcasts, rising civilian casualties, and escalating retaliation threats.

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Israel-Iran conflict intensifies with airstrikes disrupting broadcasts, rising civilian casualties, and escalating retaliation threats.


Missiles are flying and media outlets are under fire as the Israel-Iran conflict escalates.

An Israeli airstrike disrupted Iranian state TV mid-broadcast, while Iran vows more retaliation against Israeli cities.

The death toll rises with civilians paying the price, as both nations dig in and defy calls for peace.

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#IsraelIranTensions #WarUpdate #CivilianCasualties #StateTVAttack #MiddleEastCrisis #LiveBroadcast #IranRetaliates #ConflictZone

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