We get asked every day, 'Why has my premium gone up?'
'I haven't had a claim....'
CGU one of Australia's largest insurers provided some insights recently;
From September 2010 - to February 2011 most of Australia experienced above average rainfall except WA, of which recorded their lowest rainfall on record but experienced bush fires. These significant events are becoming the new normal in our everyday lives here in Australia a land of extremes.
CGU registered an additional 25 000 claims in this past summer. This kind of volume impacts simple supply and demand principals such as the cost of labour, materials and qualified trades people and as we have been facing these extremes as a nation - often trades people will travel to where the work is, therefore large events such as Queensland's flood will put pressure on the labour and material supply in other states such as Victoria and South Australia.
While this is not exhaustive answer, it gives some food for thought. Would love to hear your thoughts.
Cheers
From The Longfellow.
