2024 ended with premium increases slowing and the softening of some insurance lines. However, economic conditions are still tough, insurance affordability and availability issues continue and climate threats loom. These are some of the obstacles ahead for brokers and their clients.
Insurance Business approached industry leaders to find out how they see 2025’s challenges?
Damien Coates (pictured above), CEO of DUAL ANZ, the specialist underwriting agency, said compound premium increases had been the major driver of growth for the market in recent years. That’s no longer the case.
“With premium increases easing, the challenge will now be to drive more efficiencies in market placement and use of technology for brokers to continue to maintain growth,” said the Sydney-based CEO.
Michael Miller (pictured immediately below), Suncorp Group’s CEO for commercial and personal injury, placed 2025’s challenges in the context of difficult economic conditions.
“We acknowledge it has been a challenging period for our broking partners and their customers amid ongoing inflationary pressures,” said Miller. “This is why we have doubled down on broker relationships, claims experience, differentiated customer experiences like our risk engineering capability and, most of all, disciplined underwriting in any market.”
He said the biggest challenge is always keeping an eye on the market cycle and brokers’ needs while at the same time balancing growth and financial performance.
Suncorp’s Kira Pellicano said claims is at the heart of industry efforts to navigate a rapidly evolving landscape. Sydney-based Pellicano is her firm’s head of commercial claims.
“The biggest challenge we face at the moment is the intersection between increased frequency and severity of weather events, increased customer expectation, real and pressing issues surrounding affordability and heightened regulatory requirements and focus,” she said.
Pellicano said the role of her firm is “to tread this fine balance” and have enough people on deck to manage customer expectations while also improving efficiency and customer value.
Miller’s answer to the challenges, he said, is ongoing collaboration with broking partners and their customers.
“We will be working closely with our broking partners and their customers to continue navigating tough economic conditions, against the reality of rising input and claims costs and overall affordability of premiums,” he said.
Miller said his firm will continue to invest in new technology to help.
“But we must also remain focused on investing in our people and overall technical excellence in underwriting, claims and distribution,” he said.
Pellicano said her immediate business challenge is balancing the tension between productivity and cost while also maintaining high levels of customer service.
“The claims experience is the product in action,” she said. “The opportunity we have with any challenge is that pressure drives innovation, we have an opportunity to think about things differently and work together as an industry to support our brokers and end customers.”
Giant insurer Allianz Australia also moved its financial lines business to DUAL Australia. Coates described that as a big 2024 challenge.
Coates’ firm also stands out for making big efforts to support charities. The CEO said these efforts are among his most memorable from 2024. For example, his firm’s Signature Charity events.
“We had 550 people attend in four locations in Australia and raised over $275,000 for some amazing charities, showing that the insurance industry is a force for good,” he said.
Leo Abbruzzo, DUAL ANZ’s executive chair, also told IB that fundraising efforts counted as his most memorable industry events during 2024. He said many insurers are “passionate about giving back to their communities.”
“In the past financial year, DUAL raised over AU$639,000 for charities, many of which were chosen by our employees,” he said. “Supporting causes that are important to our team fosters a sense of connection and it’s something we’re really proud of.”
Other major insurance firms also made significant efforts to help charities. For example, Steadfast Group’s Robert Kelly raised $135,000 at the annual CEO Dare to Cure in support of the Children’s Cancer Institute.
Another feature of 2024, according to some stakeholders, was the popularity of insurance events. Professionals from across the industry turned out in their 100s, sometimes 1,000s. The Steadfast Convention, the National Insurance Brokers Association (NIBA) Convention and Underwriting Agencies Council (UAC) Market Exchanges all reported bumper numbers of attendees.
“There were some great events and opportunities across 2024,” said Pellicano. “We had a full team represented at the APIG Conference [Australasian Professional Indemnity Group Conference] which was highly valuable.”
The Suncorp leader said, for her, NIBA’s Convention also stood out.
“NIBA this year was especially memorable - I grew up in Adelaide, so I was very proud of the opportunity NIBA gave Adelaide to shine and how it highlighted some great spots across the city,” she said. “The content was highly topical with the speakers and sessions knowledgeable and inclusive.”
Are you an insurance professional? What stood out for you in 2024? What’s your biggest challenge in the year ahead? Please tell us below
