i went to get my PI insurance renewed last week and was i shocked by my broker's stated quotation! that would be an understatment! the premiums have increase by four times! is it even fair. we honest people, in need of that insurance work so hard to keep it going but end up as sufferers on hands of fraudulent person's who make wrongful claims which ultimately pushes the premium quotes higher and higher still. need a solution. this has got to be taken care of!

jay82 wrote on Jun 7^th, 2012 at 6:50pm:

i went to get my PI insurance renewed last week and was i shocked by my broker's stated quotation! that would be an understatment! the premiums have increase by four times! is it even fair. we honest people, in need of that insurance work so hard to keep it going but end up as sufferers on hands of fraudulent person's who make wrongful claims which ultimately pushes the premium quotes higher and higher still. need a solution. this has got to be taken care of!

Yes, insurance rates are soaring everywhere.

is there any chance of paying lower premiums somehow.any flexible policy available maybe i hope!? does anyone know of any reasonable affordable broker perhaps?

jay82 wrote on Jun 7^th, 2012 at 6:50pm:

i went to get my PI insurance renewed last week and was i shocked by my broker's stated quotation! that would be an understatment! the premiums have increase by four times! is it even fair. we honest people, in need of that insurance work so hard to keep it going but end up as sufferers on hands of fraudulent person's who make wrongful claims which ultimately pushes the premium quotes higher and higher still. need a solution. this has got to be taken care of!

How do you know its because of fraudulent claims? There have been a few "natural disasters" in recent history in australia. They have had to pay out a lot of legitimate claims lately. Their profits are always first and paying out claims is not profitable.

SOB

jay82 wrote on Jun 7^th, 2012 at 6:50pm:

i went to get my PI insurance renewed last week and was i shocked by my broker's stated quotation! that would be an understatment! the premiums have increase by four times! is it even fair. we honest people, in need of that insurance work so hard to keep it going but end up as sufferers on hands of fraudulent person's who make wrongful claims which ultimately pushes the premium quotes higher and higher still. need a solution. this has got to be taken care of!

Jay,
The Professional Indemnity segment of the market is somewhat restricted, in terms of the insurers willing to get involved and as Muso said the whole insurance market is going up, for various reasons.

That said, an increase of that size would seem "unusual", IF the nature (what you do) and size (turnover) of your business has remained the same!

I'm assuming you haven't just accepted your current brokers quote, but if you haven't already done so, I would certainly recommend you seek alternatives, via other brokers, of which there are quite a few.

Depending on what you do, you may fit into one of the group schemes which are operated by various brokers for various types of business, which could attract better terms for you & again depending on what you do, it may be better to look at a few of the larger international brokers, who are better placed in some business lines.

I know you are reffering to the credit crunch that happened, cause of the over use of credit cards. but why affect on insurance, when the credit cards are stil hadly affected by the incident and still being heavily promoted.
And you are correct, i havent accepted my broker's quotation. he is a fraud for sure, the increase can't be as much, well, i'd be glad for you inputs on some reasonable brokers please friends:)

Quote:

I know you are reffering to the credit crunch that happened, cause of the over use of credit cards.

Umm..is that the way that you see it?
The overuse of credit was employed by the bankers with ridiculous, stupid, outlandish competition with each other.

jay82 wrote on Jun 12^th, 2012 at 5:38pm:

I know you are reffering to the credit crunch that happened, cause of the over use of credit cards. but why affect on insurance, when the credit cards are stil hadly affected by the incident and still being heavily promoted. And you are correct, i havent accepted my broker's quotation. he is a fraud for sure, the increase can't be as much, well, i'd be glad for you inputs on some reasonable brokers please friends:)

No, actually the PI market had been restricted for some time before that, in terms of the number of players in the local (OZ) market, but I have no doubt it since shrunk further and the credit card issue is entirely separate again.

That said, the GFC would no doubt have had some effect, as well as some natural disasters (Floods, Storms, Earthquakes etc) in OZ & NZ, have had some effect on Home & other property insurances.

In terms of finding a broker, you may like to have a look at the following NIBA (National Insurance Brokers Association) site, to narrow the search down to someone in your area, &/or who specialises in the product you want -
http://www.niba.com.au/html/need-a-broker.cfm

Your post made me wonder about one more thing. Like you said there are various factors that contributed in increasing insurance rates like floods etc, would the presidential elections also have any significant affect on the insurance rates? If so, will they increase or decrease?

jay82 wrote on Jun 18^th, 2012 at 7:39pm:

Your post made me wonder about one more thing. Like you said there are various factors that contributed in increasing insurance rates like floods etc, would the presidential elections also have any significant affect on the insurance rates? If so, will they increase or decrease?

I wouldn't think so, at least not directly!

That said, the US presidential elections, would certainly be casting an effect on Global Economics, as TPTB try to maintain their hold and get their desired outcome/s out of the US Presidential election.

What that means is that TPTB will attempt to hold everything in balance until the election is decided & then they can let the natural course of events dictate future outcomes.

That said, I don't know IF they can successfully postpone the natural course of events long enough & events may just cascading.

In any event, TPTB will be unable to hold back this incoming tide, for long and I suspect by the end of this year or heading into next, the dam walls will start to break down and you will then see ramifications everywhere!

Actually i was looking at it from the perspective, like around election time, or the bugeting, there is change in fuel costs, taxes, all expenses and revenues are altered, doesnt neither have affect on insurances? if for example the expenses of health department increase, or reveneue do, would that have affect on health insurances?