Insurance pricing across Australia and New Zealand remained largely stable in the second quarter, with a modest rise observed in New Zealand’s property insurance market due to recent natural disasters.
Global Market Insights reports that while insurance costs were generally steady, slight increases were noted in New Zealand’s property sector, driven primarily by the impact of natural catastrophes.
Overall, the insurance market in both countries exhibited stability. However, pricing adjustments varied among different products. The property market’s influence was significant, contributing to the incremental rise in insurance premiums in New Zealand.
Insurance capacity was generally adequate but remained limited in areas prone to natural catastrophes, which affected insurers’ willingness to take on risk in those regions, according to Global Market Insights.
The trend of incorporating London market capacity into larger insurance programmes has intensified competitive pressure during pricing negotiations.
In Australia, inflationary pressures led to slight increases in auto and liability insurance rates. Conversely, the markets for Directors and Officers insurance, as well as cyber insurance, benefited from favorable pricing conditions owing to heightened competition.
Towards the end of the quarter, property insurance pricing in Australia softened. Nevertheless, businesses outside the target sector continued to face upward rate pressures.
