Navigating Insurance in an Inflationary Economy
Inflation continues to put pressure on households and businesses, and insurance is no exception. From rising timber costs to motor body repair bills, premiums for home, motor, and business insurance are being impacted.
Last quarter the Australian Bureau of Statistics data showed a 0.4% rise in household spending last quarter, with a 0.6% bump in insurance and financial services. Costs are up across the board – and insurers are factoring that in when setting premiums.
Why Are Premiums Rising?
Insurance pricing reflects both individual risk and broader industry trends. Right now, insurers are dealing with:
Rising Construction Costs: Timber, concrete and labour shortages are making it more expensive to rebuild or repair homes. Insurers are adjusting sums insured and premiums to keep up.
Chip Shortages & Vehicle Delays: New car supply is still lagging. That’s pushing up the value of second-hand cars, making repairs more expensive and driving up motor premiums.
Motor Body Repair Costs: With more people holding onto older vehicles, repair demand has surged. Supply chain delays and labour shortages are contributing to higher claims costs.
How Inflation Impacts Your Coverage
Inflation doesn’t just affect your premium – it can impact how well your policy responds when you need it.
Home Insurance: Building costs have risen, which means your current sum insured might fall short in a total loss. If you haven’t reviewed your policy in a while, it might not reflect today’s rebuild costs.
Motor Insurance: If your car’s value has increased or repairs have become more expensive, it could cost more to get you back on the road. Make sure your coverage limits still stack up.
Business Insurance: Got more stock, or paying higher wages? Or maybe your business has shifted – drop shipping instead of warehousing, or working with different suppliers? Inflation and operational changes can both affect your coverage needs. Time for a review?
How to Keep Premiums in Check
While inflation’s out of your control, there are a few ways to keep your insurance costs in line:
Review Your Coverage
Have your policies kept pace with your business or lifestyle? Less stock on hand, working remotely, or changed vehicles? Even small shifts can impact your cover and your premium.
Increase Your Excess
If you’re comfortable with a higher out-of-pocket cost at claim time, lifting your excess can reduce your annual premium.
Compare the Market
Is your broker actively remarketing your policy, or just letting it roll over? A softening market means there could be sharper pricing out there – but you won’t know unless you ask.
Bundle Where You Can
Some insurers are offering solid discounts when they can write the full account – it’s worth discussing your marketing strategy with your broker to ensure your broker is presenting your program to the market in an aligned way.
How Sage Can Help
At Sage, we understand how inflation can throw things off balance. Our brokers will help make sure your cover still fits – no gaps, no guesswork. Whether it’s your home, your business, or your car, we’ll make sure your insurance keeps pace with today’s costs.
Let’s make sure you’re protected – not overpaying or underinsured.
Inflation continues to put pressure on households and businesses, and insurance is no exception. From rising timber costs to motor body repair bills, premiums for home, motor, and business insurance are being impacted.
Last quarter the Australian Bureau of Statistics data showed a 0.4% rise in household spending last quarter, with a 0.6% bump in insurance and financial services. Costs are up across the board – and insurers are factoring that in when setting premiums.
Why Are Premiums Rising?
Insurance pricing reflects both individual risk and broader industry trends. Right now, insurers are dealing with:
Rising Construction Costs: Timber, concrete and labour shortages are making it more expensive to rebuild or repair homes. Insurers are adjusting sums insured and premiums to keep up.
Chip Shortages & Vehicle Delays: New car supply is still lagging. That’s pushing up the value of second-hand cars, making repairs more expensive and driving up motor premiums.
Motor Body Repair Costs: With more people holding onto older vehicles, repair demand has surged. Supply chain delays and labour shortages are contributing to higher claims costs.
How Inflation Impacts Your Coverage
Inflation doesn’t just affect your premium – it can impact how well your policy responds when you need it.
Home Insurance: Building costs have risen, which means your current sum insured might fall short in a total loss. If you haven’t reviewed your policy in a while, it might not reflect today’s rebuild costs.
Motor Insurance: If your car’s value has increased or repairs have become more expensive, it could cost more to get you back on the road. Make sure your coverage limits still stack up.
Business Insurance: Got more stock, or paying higher wages? Or maybe your business has shifted – drop shipping instead of warehousing, or working with different suppliers? Inflation and operational changes can both affect your coverage needs. Time for a review?
How to Keep Premiums in Check
While inflation’s out of your control, there are a few ways to keep your insurance costs in line:
Review Your Coverage
Have your policies kept pace with your business or lifestyle? Less stock on hand, working remotely, or changed vehicles? Even small shifts can impact your cover and your premium.
Increase Your Excess
If you’re comfortable with a higher out-of-pocket cost at claim time, lifting your excess can reduce your annual premium.
Compare the Market
Is your broker actively remarketing your policy, or just letting it roll over? A softening market means there could be sharper pricing out there – but you won’t know unless you ask.
Bundle Where You Can
Some insurers are offering solid discounts when they can write the full account – it’s worth discussing your marketing strategy with your broker to ensure your broker is presenting your program to the market in an aligned way.
How Sage Can Help
At Sage, we understand how inflation can throw things off balance. Our brokers will help make sure your cover still fits – no gaps, no guesswork. Whether it’s your home, your business, or your car, we’ll make sure your insurance keeps pace with today’s costs.
Let’s make sure you’re protected – not overpaying or underinsured.
Inflation continues to put pressure on households and businesses, and insurance is no exception. From rising timber costs to motor body repair bills, premiums for home, motor, and business insurance are being impacted.
Last quarter the Australian Bureau of Statistics data showed a 0.4% rise in household spending last quarter, with a 0.6% bump in insurance and financial services. Costs are up across the board – and insurers are factoring that in when setting premiums.
Why Are Premiums Rising?
Insurance pricing reflects both individual risk and broader industry trends. Right now, insurers are dealing with:
Rising Construction Costs: Timber, concrete and labour shortages are making it more expensive to rebuild or repair homes. Insurers are adjusting sums insured and premiums to keep up.
Chip Shortages & Vehicle Delays: New car supply is still lagging. That’s pushing up the value of second-hand cars, making repairs more expensive and driving up motor premiums.
Motor Body Repair Costs: With more people holding onto older vehicles, repair demand has surged. Supply chain delays and labour shortages are contributing to higher claims costs.
How Inflation Impacts Your Coverage
Inflation doesn’t just affect your premium – it can impact how well your policy responds when you need it.
Home Insurance: Building costs have risen, which means your current sum insured might fall short in a total loss. If you haven’t reviewed your policy in a while, it might not reflect today’s rebuild costs.
Motor Insurance: If your car’s value has increased or repairs have become more expensive, it could cost more to get you back on the road. Make sure your coverage limits still stack up.
Business Insurance: Got more stock, or paying higher wages? Or maybe your business has shifted – drop shipping instead of warehousing, or working with different suppliers? Inflation and operational changes can both affect your coverage needs. Time for a review?
How to Keep Premiums in Check
While inflation’s out of your control, there are a few ways to keep your insurance costs in line:
Review Your Coverage
Have your policies kept pace with your business or lifestyle? Less stock on hand, working remotely, or changed vehicles? Even small shifts can impact your cover and your premium.
Increase Your Excess
If you’re comfortable with a higher out-of-pocket cost at claim time, lifting your excess can reduce your annual premium.
Compare the Market
Is your broker actively remarketing your policy, or just letting it roll over? A softening market means there could be sharper pricing out there – but you won’t know unless you ask.
Bundle Where You Can
Some insurers are offering solid discounts when they can write the full account – it’s worth discussing your marketing strategy with your broker to ensure your broker is presenting your program to the market in an aligned way.
How Sage Can Help
At Sage, we understand how inflation can throw things off balance. Our brokers will help make sure your cover still fits – no gaps, no guesswork. Whether it’s your home, your business, or your car, we’ll make sure your insurance keeps pace with today’s costs.
Let’s make sure you’re protected – not overpaying or underinsured.
