In another head-spinning but generally improved FY2021 for insurers, the issues are big and nuanced — with COVID-19, new customer regulations and climate change the biggest of all.
A MIXED YEAR
In RADAR, Taylor Fry's annual analysis of the general insurance industry, the actuarial consultancy reveals the impacts of the past year are mixed and wide ranging.
‘Some classes of business have definitely fared better than others,’ says Taylor Fry Principal Win-Li Toh.
‘From the ongoing positive effects in motor, to the risk of increasing mental health claims in workers compensation and the significant insurer obligations towards improving customer outcomes across all lines.
‘Add to this the shockwaves of the IPCC climate report, cybersecurity concerns for directors and officers, and the urgency of affordability—as householder premiums continue to rise yet the class remains unprofitable — and it’s clear the challenges are complex.
‘Rising to them will require depth, insight and agile thinking.’
Taylor Fry’s RADAR draws on the latest APRA data, combined with the analytics and actuarial consultancy’s knowledge and decades of experience inside the industry.
Across three years of results, the analyses break down each line of business to help insurers benchmark their performance and assess strategies and goals.
It also summarises investments and solvency over the same period to give you an overview of how the market is tracking more broadly.