There’s no doubt we faced some ongoing challenges as an insurance industry in 2024. The Australian economy has remained subdued throughout the year. High inflation has continued to bite, and rising costs have impacted the general cost of claims and insurance. This has, in turn, affected our customers.
However, I feel we can stay optimistic as the industry takes steps to set itself up for future success. We’re improving products and services for our customers. We’re also investing in ways to meet these challenges and emerge more resilient and responsive.
The Insurance Council of Australia recently released its Insurance Catastrophe Resilience Report 2023-24 . It showed the impact of extreme weather on the Australian economy more than tripled over the last three decades.
Looking at the last five years, the report says the average annual cost of extreme weather claims has more than doubled to $4.5 billion. This is largely driven by the growing cost of floods.
Presented with these challenges, brokers and insurers are understandably grappling with a big question: how can we keep insurance affordable?
As insurers, we recognise our role in reducing underlying risks and improving affordability and accessibility. The industry continues to look at long-term solutions, using evidence and data to engage with governments and organisations at all levels.
However, more needs to be done to make homes, businesses and regions more resilient to catastrophic weather events. We must continue to work towards improving the long-term viability of communities at highest risk.
Flood cover changes to Allianz home insurance policies
Earlier this year, Allianz conducted a review into our optional flood cover model for Householder insurance products. In response, flood cover will soon be included as standard for all new customers of our House & Contents and Landlord policies.
This approach aligns with most other insurers in the market. The change is effective 14 January 2025. You can read more about this change in our article Flood cover standard in Allianz House & Contents and Landlord insurance.
Additionally, we’re conscious that CAT season is again here. To help your customers prepare, we have some insights and useful resources you can share with them.
Technology, platform improvements and the increasing use of AI
Technology and platform enhancements are allowing us to improve our offering across all levels of broker engagement. We’re looking ahead to a year in which our investments in technology will further streamline processes and save brokers time.
We will be making more products available to brokers on the Allianz Alive platform from next year, including Farm, Home, and Motor insurance. Looking at ways to increase our connectivity with broker platforms will continue to be a focus for 2025.
Our underwriting processes have also been evolving. We’re moving away from quite manual processes, and looking at ways AI can achieve greater efficiencies. Our state-based underwriting model lets our teams build closer relationships with you, and we recognise the importance of these close connections.
Allianz has significantly uplifted our claims capability this year. We’ve added around 100 internal assessors and increased the use of AI to speed up claims processes and reduce friction.
Positioned for growth in 2025
I feel optimistic about the progress we have made as an Allianz Commercial team in the past 12 months. We know the challenges will continue; however, we’re ready to increase our pace, growth and improvements in 2025.
In the past 12 months, there’s been steady growth across our portfolio, and a pleasing increase of more than 15 points in our Net Promoter Score (NPS). We’ve also added four new underwriting agencies – expanding our network to 13 Agencies. This now gives you access to specialised coverage and a wide range of experts.
We will continue to focus on helping build relationships with you and your customers. By sharing our expertise, we hope to free you up to focus on the important things, like maximising the opportunities ahead.
We’re also very excited to increase our investment in broker training with our comprehensive new program, Allianz Learn. This will include the All-In Masterminds webinar series. Look out for more information over the coming months.
On behalf of everyone at Allianz Commercial Australia, I’d like to thank you for your support throughout the past 12 months. I hope you have a relaxing, safe, and joyous holiday season.
Warm regards,
Phuong Ly
Chief General Manager, Commercial
This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (“Allianz”). Information contained in this article is accurate as at 21 November 2024 and may be subject to change. In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way. Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.
