Brokers placing more than 11 billion in premiums: APRA

The Australian Prudential Regulation Authority (APRA) released its Intermediated General Insurance Statistics publication for the six months to December 2018.

The Intermediated General Insurance Statistics publication provides an overview of intermediated general insurance placed with APRA-authorised general insurers, Lloyd’s underwriters and unauthorised foreign insurers (UFIs).

Aggregate business by intermediaries and authorised insurers

    • As at 31 December 2018, there were 1,664 intermediaries licensed to conduct general insurance business. Of these;
      ᵒ 791 intermediaries (48 per cent) placed business directly with underwriters
      ᵒ 29 intermediaries (2 per cent) placed all their business directly through other Australian intermediaries, and
      ᵒ 844 intermediaries (51 per cent) did not place any general insurance business in the period.
    • Of the 791 intermediaries that placed business directly with underwriters in the period;
      ᵒ 740 intermediaries (94 per cent) placed business with APRA-authorised general insurers,
      ᵒ 286 intermediaries (36 per cent) placed business with Lloyd’s underwriters, and
      ᵒ 83 intermediaries (10 per cent) placed business with unauthorised foreign insurers (UFIs).
    • Intermediaries invoiced $11.5 billion in premium in the period. Of this;
      ᵒ $9.4 billion (82 per cent) was placed with APRA-authorised general insurers,
      ᵒ $1.4 billion (12 per cent) was placed with Lloyd’s underwriters, and
      ᵒ $0.7 billion (6 per cent) was placed with UFIs.
  • Intermediaries placed $9.3 billion in premium with APRA-authorised general insurers related to policies that were effective in the preceding six-month period. This represented approximately 43 per cent of the $21.5 billion of direct premium written by APRA-authorised general insurers in the same period.
  • Industry underwriting profit for the year to 31 December 2018 was $3.5 billion (2017: $3.3 billion), driven by premium increases across almost all classes of business.
  • Investment income decreased during the year, mainly due to unrealised losses in both equity and indirect investments in the December quarter.
  • Claims from the Sydney hail storm in December resulted in quarterly underwriting losses in most of the short tail property classes. However the underwriting results in these classes improved during the year due to premium increases.
  • The net loss ratio for the long tail classes increased by 5 per cent compared to the prior year, predominantly driven by lower reserve releases in CTP motor vehicle, and reserve strengthening in Public and product liability and Professional indemnity.

The entire  December 2018 Intermediated General Insurance Statistics publication are can be accessed here.