Hawkins highlighted that while inflationary pressures have been a major driver of premium hikes in recent years, there are signs of these pressures abating; they've seen significant inflation on everything, he noted, acknowledging the impact on both insurers and policyholders. However, he expressed optimism about the future, and that he would expect the next six to 12 months to see the inflationary impact of insurance reduce.
Despite this positive outlook, Hawkins cautioned that premiums would continue to rise, though more in line with general inflation rates rather than the steep increases observed previously. This trend is not unique to IAG but is reflective of the broader insurance market in Australia.
For small to medium business owners, self-employed professionals, and high-income freelancers, this development underscores the importance of proactive risk management and regular policy reviews. Understanding the factors influencing premium adjustments can aid in making informed decisions about coverage and budgeting for future expenses.
In light of these anticipated changes, businesses are encouraged to:
- Regularly assess their insurance needs to ensure adequate coverage.
- Compare policies from different providers to find the best value.
- Stay informed about market trends and regulatory changes affecting insurance premiums.
By staying vigilant and informed, businesses can better navigate the evolving insurance landscape and mitigate potential financial risks associated with premium increases.
