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Intermediary premium climbs past $11 billion

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Insurance intermediaries placed $11.5 billion of premium in the December half, new Australian Prudential Regulation Authority (APRA) data shows.

This compares with $10.4 billion of business placed in the preceding six months to June 30.

APRA-authorised general insurers accounted for about $9.4 billion of invoiced premium in the December half, Lloyd’s underwriters $1.37 billion and unauthorised foreign insurers (UFIs) $728 million.

Fire and industrial special risk lines made up 56% of the premium placed with UFIs.

Singapore and the UK continue to dominate the UFI space, taking a combined 80% share or $579 million of business placed during the half.

The high-value-insured exemption was used to place 77% of premium invoiced to UFIs, the custom exemption 17%, atypical exemption 4% and foreign exemption 1%.

The number of new or renewed policies placed with UFIs increased to 4355 from 3503 in the corresponding period of 2017 and the average premium across all exemption types fell to $161,200 from $174,700.

There were 1664 licensed intermediaries in the December period.

For the full year to December, premium placed with insurers went up 8.1% to $18.3 billion and with Lloyd’s underwriters business increased 22.4% to $2.4 billion.