Figures show drop in premium

The amount of premium placed by brokers has fallen more than $200 million in recent months, according to the latest figures from APRA.

Intermediaries invoiced $9.673 billion in premium in the last six months of 2014, down from $9.888 billion the previous year.

Within that overall figure, business placed with Lloyd’s underwriters also fell significantly, by $105 million.

The biggest proportionate fall was in premium placed with unauthorised foreign insurers (UFIs), which fell from $802 million to $708 million, a drop of almost 12%. The fall means the proportion of all intermediated premium placed with UFIs has fallen from 8.1% to 7.3%.

The Federal Government recently reiterated its commitment to tackling insurance affordability woes in North Queensland by boosting the use of UFIs, with Assistant Treasurer Josh Frydenberg promising to consult with the industry on its plans.

Meanwhile, longer-term figures show that in terms of the total premium written by APRA-authorised insurers, the portion placed by brokers has shrunk slightly in the past two years, from 44% to 43%.