The recently published APRA Quarterly Insurance results have provided insights into the performance of listed insurers and offered a glimpse into what the future may hold for the industry in FY24. While the overall results for the quarter were favourable at an industry level, a closer look at the Motor and Home Insurance segments reveals some challenges.
Year-to-Date (YTD) performance analysis reveals key trends in the general insurance industry. Householders' Insurance witnessed a notable 14% increase in Gross Written Premium (GWP) driven by a 12.7% rise in prices. However, despite the price inflation, the net earned loss ratio deteriorated by 3.7%, resulting in a negative underwriting margin of -7.1%.
Personal Lines Insurers are facing challenging times as costs are increasing at twice the rate of the market. In addition to that, there are regulatory hurdles to navigate, and managing consumer expectations is becoming increasingly difficult.