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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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Amazon Prime’s ‘The Boys’ Season 4 will explore contemporary political polarisation

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Show creator Eric Kripke hints at a narrative that will not shy away from uncomfortable truths, promising a season that challenges viewers to confront their own beliefs and biases.

Known for its bold satire and unflinching critique of societal issues, the series seems poised to dissect the current climate of division with its trademark blend of dark humour and gritty realism, as reported by Reuters.

Director/Filmmaker Rob Fantozzi unpacks the latest from The Boys and beyond in the entrainment world. #featured

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Tesla shareholders approve historic $56B Elon Musk pay package

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Tesla shareholders have voted to approve Elon Musk’s unprecedented $56 billion compensation package, underscoring their confidence in his leadership and vision for the electric car company.

The package, which is tied to ambitious performance targets, includes a mix of stock options and bonuses contingent upon Tesla’s financial and operational milestones over the next decade.

As reported by Reuters, the approval underscores the support that Musk enjoys from Tesla’s retail investor base, many of whom are vocal fans of the mercurial billionaire.

The proposal passed despite opposition from some large institutional investors and proxy firms.

#featured

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The secret aspect of exercise and trauma release

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Recent studies have shed new light on the profound impact sedentary behavior is having on mental health.

A meta-analysis revealed a strong correlation between increased sitting time and higher rates of depression.

Now, many experts believe that movement and exercise are not only beneficial for mental health but also play a crucial role in trauma release.

Jenni Crumpton Ross, the President and CEO of Kula for Karma joins Veronica Dudo to discuss.

#IN AMERICA TODAY #trending #mentalhealth #business #wellbeing

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