Australian general insurers will see premium rates and combined operating ratios pick up this year, according to a new report.

The annual JP Morgan/Taylor Fry General Insurance Barometer points out what the industry already knows – last year was extraordinarily tough due to a spate of catastrophes and downward pressure on rates.

The commercial sector was particularly hard hit, with rates down 6% and an average combined operating ratio of 107%.

Domestic rates were flat overall, with motor down 2%, and the average combined operating ratio deteriorating to 91%.

While conditions remain challenging, the report says this year offers moderate improvements, assuming a return to normal catastrophe experience.

“We’re looking at positive developments in both domestic and commercial classes for the coming year,” Taylor Fry Principal Kevin Gomes said.

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