QBE set to spend big in drive for SME business

18 August 2022

QBE will modernise its systems to improve the way it transacts business with brokers and customers in Australia, Group CEO Andrew Horton says.

“We are going to go on a relatively high investment spend modernising our systems, which will give both our brokers – because most of our business comes through brokers – and our customers an even more rapid service than we have historically given,” he told insuranceNEWS.com.au.

Mr Horton says improved digital technology is particularly important in transacting with clients at the “smaller end” of the commercial sector, compared with mid-market and larger businesses, and it’s an area QBE is targeting.

“As you come down into the smaller businesses, they want a very straightforward experience with their insurer and that is heavily driven by the quality of the systems that they interact with their insurer through,” he said.

“It is a very competitive market here in Australia. But I do think there is an opportunity to transact insurance differently, and better.”

QBE Australia Pacific’s gross written premium (GWP) increased 6% to $US2.5 billion ($3.5 billion in the first half), reflecting rate increases and retention, partially offset by lower volumes in lenders mortgage insurance (LMI).

Premium rate increases averaged 9.1%, up from 7.7% in the prior period. Increases were broad-based but more pronounced in short-tail portfolios exposed to heightened natural peril activity and increased inflation.

Commercial gross written premium growth of 7% was underpinned by farm, commercial packages and engineering.

The combined operating ratio improved to 90% from 91% supported by results in lenders mortgage insurance, where there was favourable claims experience, and New Zealand and Australian commercial portfolios, the company says.