1
00:00:00,160 --> 00:00:03,720
Speaker 1: Question for you, is the insurance market the last to

2
00:00:03,760 --> 00:00:06,680
Speaker 1: get a good going over from the regulatory authorities having

3
00:00:06,720 --> 00:00:08,760
Speaker 1: become a country that loves a good market study of course,

4
00:00:08,800 --> 00:00:12,360
Speaker 1: petrol bank, supermarkets, Telco surely insurance, and while you're at

5
00:00:12,360 --> 00:00:15,080
Speaker 1: at probably the aviation sector would be a good next

6
00:00:15,560 --> 00:00:18,439
Speaker 1: starting point. Australia aren't overly happy at the moment with

7
00:00:18,440 --> 00:00:21,440
Speaker 1: the way their insurance industry works, and the regulator last

8
00:00:21,480 --> 00:00:25,279
Speaker 1: week hinted inspections of some sort are coming. And like banking,

9
00:00:25,600 --> 00:00:27,600
Speaker 1: a lot of the insurance game there is run by

10
00:00:27,640 --> 00:00:30,000
Speaker 1: the same people as it is here, and like the banks,

11
00:00:30,000 --> 00:00:31,960
Speaker 1: they have the same lineup of excuses as to why

12
00:00:31,960 --> 00:00:35,040
Speaker 1: they're so profitable. IAG, for example, made a profit in

13
00:00:35,040 --> 00:00:37,800
Speaker 1: the last year of about a billion dollars a billion,

14
00:00:38,200 --> 00:00:40,080
Speaker 1: and they did it off the back of rising premiums.

15
00:00:40,080 --> 00:00:41,919
Speaker 1: It was an eight percent rise in profit and the

16
00:00:41,920 --> 00:00:45,159
Speaker 1: dividend was twenty seven cents. Premiums are up because of

17
00:00:45,200 --> 00:00:49,080
Speaker 1: climate change and payouts and risk and reinsurance, the usual excuses.

18
00:00:49,080 --> 00:00:52,040
Speaker 1: Now they get me wrong. We need profitable, stable companies,

19
00:00:52,040 --> 00:00:54,600
Speaker 1: of course, but in this cost of living crisis, councils

20
00:00:54,680 --> 00:00:57,160
Speaker 1: and insurance companies seem to be the last one standing.

21
00:00:57,400 --> 00:00:59,320
Speaker 1: When it comes to passing costs on at rates a

22
00:00:59,320 --> 00:01:03,640
Speaker 1: mile higher than inflation. Iag said, we are starting to

23
00:01:03,720 --> 00:01:08,840
Speaker 1: see inflation easing. Excuse me, it has eased. It's in

24
00:01:08,880 --> 00:01:11,160
Speaker 1: the band. Central banks all over the world have or

25
00:01:11,160 --> 00:01:13,360
Speaker 1: are about to cut rates based on the fact inflations

26
00:01:13,640 --> 00:01:16,959
Speaker 1: under control. Not only have premiums gone up, they then

27
00:01:16,959 --> 00:01:18,440
Speaker 1: went and flagg that they're going to be going up

28
00:01:18,440 --> 00:01:23,560
Speaker 1: another nine percent this year. Reinsurance is part of their excuse.

29
00:01:23,920 --> 00:01:26,280
Speaker 1: Here's a fun fact. One of the biggest reinsurers in

30
00:01:26,280 --> 00:01:28,720
Speaker 1: the world is Swiss Ree. Guess how much their profits

31
00:01:28,800 --> 00:01:32,360
Speaker 1: up by seventeen percent to what I hear you ask? Oh,

32
00:01:32,800 --> 00:01:36,320
Speaker 1: a bit under four billion dollars. So where's the line

33
00:01:36,400 --> 00:01:40,080
Speaker 1: a strong profitable company, companies and industries versus taking the

34
00:01:40,120 --> 00:01:42,679
Speaker 1: mickey and simply passing on costs because they can and

35
00:01:42,720 --> 00:01:45,280
Speaker 1: seeing massive profits with big dividends while still milking the

36
00:01:45,319 --> 00:01:48,640
Speaker 1: old idea that everything's bad. Storms, rage and pay outstrain resources. Now,

37
00:01:48,680 --> 00:01:51,560
Speaker 1: if that isn't a market study waiting to happen, I

38
00:01:51,640 --> 00:01:55,040
Speaker 1: don't know what is. For more from the mic Asking Breakfast,

39
00:01:55,200 --> 00:01:58,559
Speaker 1: listen live to news talks that'd be from six am weekdays,

40
00:01:58,760 --> 00:02:00,720
Speaker 1: or follow the podcast on iHeartRadio.