During a Hard Market, Insurer underwriting criteria becomes tougher and more stringent. Meaning they are less likely to provide insurance coverage to a business with a high-risk occupation or location.
Across the past 5-10 years, Insurers have increased the sophistication of their systems. This has allowed Insurers to more accurately map locations or regions that have high risk exposures.
These systems now permit Insurers to exclude suburbs or even streets from their acceptability criteria.
As Insurers move to reduce their exposure to certain regions. We will see more of these regions identified, with Insurers either increasing premiums substantially or decline to cover entirely.
Where in previous years, this has traditionally been applied to all regions in Far North Queensland and Northern Territory. These regions could be to be expanded to include further coastal regions of Queensland, Northern Western Australia and Northern Coastal NSW.