Intermediaries place more business as invoiced premium passes $18 billion

3 April 2023

Business placed by general insurance intermediaries, as measured by premium invoices, went up in the July-December period to $18.5 billion from $17.2 billion a year earlier, according to the Australian Prudential Regulation Authority (APRA).

More than half of the business went to APRA-regulated general insurers, who were invoiced about $14.6 billion. The figure is an increase from $13.6 billion a year earlier.

Business placed with Lloyd’s underwriters and unauthorised foreign insurers (UFIs) also increased, from $2.3 billion to $2.4 billion and from $1.19 billion to $1.46 billion respectively.

The APRA update says 612 intermediaries placed business with an APRA-authorised general insurer during the period, 283 with Lloyd’s underwriters and 95 with UFIs and 1028 placed no business at all.

There were 1691 intermediaries operating during the December half. However, APRA says the number of intermediaries that placed business with an underwriter is not equal to the sum of the numbers that placed business with authorised general insurers, Lloyd’s underwriters and UFIs as they do business with a variety of underwriters.

Of the $1.46 billion premiums invoiced to UFIs, Singapore led with $632 million followed by the UK ($316 million), Bermuda ($217 million) and continental Europe ($149 million).

UFIs grouped in “other countries” took in about $138 million and New Zealand UFIs $14 million.

By product type, fire and industrial special risk (ISR) accounted for 59% of business placed with UFIs or $868 million.

Risks in “other direct classes” placed a distant second (18%, $263 million), followed by professional indemnity (13%, $186 million), public and product liability (8%, $112 million) and marine and aviation (2%, $31 million).