According to the latest quarterly BizCover Small Business Index, insurance rates have fallen for the majority of sectors. Last quarter, there was a rise in premiums after 10 straight quarters of decline, however this quarter, only insurers in the retail sector were able to hold onto their gains.
BizCover says the driving force behind last quarter’s rate increase was the hardening of rates in non professional sector, mainly around public liability and business packs (covering perils and theft), with the retail sector being hardest hit.
This quarter, there has been a decline in rates in sectors with strong distribution channels, including trades and services.
Managing director of BizCover Michael Gottlieb says there will be strong competition among insurers in the coming months.
“While there is an abundance of capacity and fierce competition in the insurance market, insurers have managed to hold onto their rate increases from last quarter. I suspect given the June quarter is a substantial renewal season we will see insurers compete aggressively which may put short term pressure on rates. This will be more exacerbated in the insurance segments that have significant competition while insurers will likely have more success in maintaining their rates for perils and theft in the SME retail/wholesale sector.”