With listed insurance businesses signalling price increases throughout the industry, one exec has said that whilst prices may be rising in some areas, others are still in decline.
Mark Searles, CEO and managing director of
AUB Group, said that prices in the insurance market last year remained flat, even with increases towards the second half of the year.
Search and compare insurance product listings against Financial Loss from specialty market providers here
“I think we have turned a corner with regards to the premium rate environment,” Searles told
Insurance Business.
“We did actually see over the fourth quarter low-single-digit increases come through on average – 2%-3% came through in May and June. That looks to be replicated now, looking at the July data.”
Searles noted that the insurance market needs to be wary on hardening, as it is still selective rather than across the entire insurance landscape.
“I think the market gets carried away a little bit with regards to premium rate increases and the magnitude of them,” he said. “There are some areas going up really well; equally there are some areas still going down as well, which is why we take an averaged view of the world.”
Whilst much has been made of price increases in the property market by other executives, Searles said that there is “volatility across the board” in the insurance market as price changes have an impact.
“We are at the tail end of the cycle where there are some interesting decisions made and a lot of it is around individual risk decisions and pricing for those,” he said. “That is why we take averages. You tend to believe your last ever case which you should never do – you should look on an average basis.”
Over the coming financial year, AUB Group has suggested in its outlook that it expects price rises in the low single digits on average across its book, but the firm is not reliant on price increases to hit profit goals.
Related stories:
Steadfast CEO: Stick to your guns
IAG: Hardening market set to continue through FY18
.jpg)
