Have you recently renewed your insurance? Did you wonder why it seems more complicated and insurance cover is trickier to get? You’re not alone.

Ausure Insurance Brokers’ Grant Brokenshire explains:  “Let’s be honest, not many people outside of the insurance industry like having to get insurance that much. It can seem expensive, it can be complicated and the paperwork you’re expected to trawl through can make it seem difficult for some to understand. While updated regulatory requirements and consumer expectation has been great news for overall professionalism of the industry, it has made the process of insurance seem even more complicated.

This is where you really need the advice of a trusted Ausure insurance broker to assist.

Take farm insurance for instance. It used to be simple enough. Review your schedule, get a couple of quotes and pay the bill. However, those times have gone. Your insurance broker is required to provide you with information, advice and documentation to meet regulatory requirements that sometimes may seem onerous and over-the-top.

Right now, the insurance market for farm insurance can be described as a “hard market” and it is a term you may hear more often. Historically, farm insurance has been competitive, with several mainstream and specialist insurers competing strongly for business. However, you might be realising it’s no longer as simple as your insurance broker “getting a couple of quotes.”

Insurers adjust their appetite for risk constantly and the influences include international experience (which can affect their ability to reinsure for larger events or disasters), national experience (usually large weather events in Australia) or risk specific experience (your own claims history).

More recently, however, insurers capacity (the amount of risk they wish to accept) is being driven by data which helps to identify the potential for large loss (usually widespread weather events or fire). The data that is available is ever increasing. International reinsurers (the insurers that insure insurers) are looking at Australia very closely and evaluating whether the risk justifies the premium. Australia has had several larger events which have impacted on insurers results. They are well documented.

In a hard market, the demand is still high (clients still require insurance as their assets and their asset values, including the replacement costs, continue to increase) but the supply is low (there are either less insurers, or it is more difficult to place cover with them as their acceptance criteria becomes more stringent). Premiums also generally increase as insurers evaluate risk with ever increasing sources of data. There is a real risk that farms become uninsurable, or insurance becomes unaffordable.

Your insurance broker must navigate the current market and try to obtain cover for you. It is tough and not as simple as obtaining another quote so be kind, help where you can by providing information in a timely manner and let them do their work. Where you feel that your risk is superior to others of a similar type then that reasoning should be provided to your broker and your insurer. More than ever, insurers need to be informed and the risk needs to be “sold” to them. So, the more information you can provide the better.”

The good news is this: Once you’ve taken the time to get trusted insurance advice, taken out adequate insurance cover for your risk profile and properly understood your insurance policy, you can then enjoy the peace of mind that comes with knowing your assets are covered. Contact Ausure today by calling us on 1300 587 225 or finding a broker here.