Property Insurance (Including Business Interruption) Market Recap 2020
The start of the year for Australia was shaken by bushfires, floods and hail storms, causing widespread property damage and business interruption (BI) losses. The impacts on the insurance market were further compounded shortly thereafter by the COVID-19 pandemic. The combined negative effect on insurers’ profitability has been significant.
The recent COVID-19 Australian business interruption insurance test case ruling has further added to the stress of the market.
Average premium increases of 31% locally and 24% globally have been observed in Q3, 2020. An increase in premium-retention trade-offs and more restrictive cover as well as reduced competition are just some of the local trends observed in the Australian property market this year.
For more insights on the local property market’s movements, trends, developments and what we expect to see in 2021, download our full report.
LCPA No. 20/637
NOTE: This Property/BI report is a part of the 2020 Australian Insurance Market Recap Series – a series of local market insights by insurance class, with a specific focus on the state of market in Australia. Other insurance classes featured in the series include: