General insurance brokers help place $7.8 billion in premium

The Australian Prudential Regulation Authority (APRA) has recently released its Intermediated General Insurance Statistics publication for the June quarter 2017. The report states that intermediaries including general insurance brokers placed $7.8 billion in premium with APRA-authorised general insurers that were effective in the preceding six-month period.

This represented approximately 42 per cent of the $18.7 billion of direct premium written by APRA-authorised general insurers in the same period. Highlights for aggregate business by intermediaries and authorised insurers included the following:

• As at 30 June 2017, there were 1,645 intermediaries licensed to conduct general insurance business. Of these;
ᵒ 798 intermediaries (49 per cent) placed business directly with underwritersa between 1 January 2017 and 30 June
2017,
ᵒ 31 intermediaries (2 per cent) placed all their business directly through other Australian intermediaries, and
ᵒ 816 intermediaries (49 per cent) did not place any general insurance business in the period.

• Many intermediaries placed business with a variety of underwriters in the period. Of the 798 intermediaries that
placed business directly with underwriters in the period;
ᵒ 751 intermediaries (94 per cent) placed business with APRA-authorised general insurers,
ᵒ 253 intermediaries (32 per cent) placed business with Lloyd’s underwriters, and
ᵒ 74 intermediaries (9 per cent) placed business with unauthorised foreign insurers (UFIs).

• Intermediaries invoiced $9.4 billion in premium in the period. Of this;
ᵒ $0.5 billion (5 per cent) was placed with UFIs,
ᵒ $0.9 billion (10 per cent) was placed with Lloyd’s underwriters, and
ᵒ $8.0 billion (85 per cent) was placed with APRA-authorised general insurers