The insurance industry as a whole is currently on the soft side. Although the market is recording profits, insurance premiums are falling, mainly due to a high level of competition among insurers.
This makes it rather favourable to those companies seeking general or specialised business insurance, or looking to review their current policies to focus on greater quality and cost-effectiveness. With many insurance companies competing to offer the best price, it is a good time for consumers.
This was highlighted in the latest research by the Australian Prudential Regulation Authority (APRA), reported this month by Insurance & Risk Professional. Statistics show that the industry’s insurers have improved their net earned premium revenue by 2.4 per cent in the last quarter, and yet many business insurance products are falling in price.
One of the biggest premium reductions has been in fire and industrial special risks (ISR) insurance, which has fallen by 14 per cent in the past year – from $2,962 to $2,592. For business owners worried about bushfire season, it might come as welcome news that it will be generally cheaper to insure against the risks.
Meanwhile, other insurance products received the same premium trimming.
The cost attached to professional indemnity products fell by 7 per cent as a whole, covering workers of all kinds from the risk of making an actual or alleged negligent act, error or omission in the conduct of their business or profession
Public and product liability premiums also fell by 4 per cent, with more businesses theoretically able to afford the coverage for faulty items or a breach in duty of care, however one may arise.
Comparing business insurance providers can be a time-heavy task, which is why MGA’s offices are spread across Australia to provide businesses of all sizes a helping hand in building a tailored level of coverage.
Contact an MGA Broker to find out more.