Insurers urged to innovate

Risk insurers should capitalise on the benign overall claims environment by directing any profits into product development and innovation, according to Aon. 

Rather than “banking the difference, insurers must change their product scope to meet the evolving needs of the market, Aon Risk Solutions Australia CEO Lambros Lambrou said. 

He said insurance was an attractive investment proposition to the international market, who are increasingly looking for alternative investment vehicles.  

And despite commentary to the contrary, the domestic insurance market is in relatively good shape at a macro level, with fewer attrition losses and natural disasters, Lambrou said.  

However, the landscape has been challenging for insurers with bushfire and offshore energy exposures, as well as workers compensation insurers.  

“Both the volume and the value of Workers Compensation claims are on the increase,” he said.  

“This means that clients with poor loss histories will inevitably be asked to take on more risk themselves.”