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.
LCPA No. 20/637
“Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”