As the global trend of low investment returns and volatile stock markets continue, we’ve seen a number of overseas-based insurers entering the professional indemnity insurance market. Typically these insurers offer low premiums as a means of enticing agents away from established Australian insurers.
While these low premiums are attractive, agents need to be aware that there is the risk that these insurers can leave the marketplace with little notice. A recent example is that of Bermuda-based Axis Specialty, which is (according to recent media reports) "currently undertaking a strategic review of its Australian operations with a view to selling or going into run-off". The Axis professional indemnity insurance product is sold and distributed in NSW by AJ Gallagher.
Increased competition is good. It allows agents to secure the best price. But before you insure with an overseas-based insurer, be sure to ask your existing insurer if they will price match. In most cases, your local insurer will match and even beat these prices.
This ensures you are able to retain your long-standing relationship with your existing insurer and still gain the advantage of the low premiums quoted over overseas-based insurers.
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