Rising Premiums – What’s In Your Control?

Our view: average annual insurance premiums will continue to increase by 8-12% for the foreseeable future.

Whilst there are some exceptions to the above, the cost of business insurance in Australia has been rising steadily for several years, typically at rates well above the Consumer Price Index. The price of your insurance premiums is affected by the estimated risk level of a business or property, but it can also be impacted by factors outside of individual control, such as rising government taxes in sectors such as the Emergency Services Levy or climate change. A common way for insurers to manage uncertainty is through premium increases. While each sector is different, current market indicators suggest premiums are unlikely to stabilise any time soon.

It’s time to review and refocus

Having weathered the worst of the pandemic storm through good management, good luck, or a combination of the two, many businesses will be able to absorb such increases, certainly in the short to medium term. However, an indefinite rise in premiums has already started to place pressure on the bottom lines of thousands of business operations. If you're feeling the strain, now is the time to take stock of your current policies and consider better long-term options.

Manage your risk with up-front action for long-term savings

The interest in risk management and mitigation processes has grown in recent years from clients doing exactly this. A greater focus on risk management and mitigation processes can bring you measurable benefits both now and in years to come.

If structured and implemented effectively, the chances (and potential consequences) of your business experiencing a major loss event could be greatly reduced. Risk assessments help businesses quantifiably evaluate the likelihood of these events and use strategies to help minimize their impact. It can also effectively help in relieving your increasing annual insurance bill by letting you evaluate the necessity of certain policies. Over time, your savings could be significant. Assuming insurance costs continue their upward trend in 2023 as expected, we predict this demand will only intensify as more local businesses seek cost-effective alternatives to their traditional insurance programs.

Let’s Talk

The team at Cutcher & Neale General Insurance have been successfully operating in the insurance industry and tailoring risk management strategies for clients for more than 20 years. 

Want to discuss your options? Get in touch with our award-winning team today.