Intermediary premium rises to $18.5 billion in December half: APRA

29 March 2023

General insurance intermediaries placed about $18.5 billion in premium for the six month-period to December, up from almost $17.2 billion a year earlier, the Australian Prudential Regulation Authority (APRA) says in a bi-annual update today.

About $14.6 billion was placed with APRA-authorised general insurers during the period, compared with $13.6 billion in the corresponding period of 2021.

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

The APRA update says there were 1691 intermediaries operating during the December half. APRA defines general insurance intermediaries as current AFSL holders who are authorised to deal in general insurance products.

Singapore-based organisations were the preferred choice for intermediaries using UFIs, making up about $632 million of premium invoiced to foreign domiciled insurers that are not authorised by APRA to carry on insurance business in Australia except under limited exemption arrangements.

UFIs in the UK placed second ($316 million), followed by 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).