Insurance Australia Group Ltd. expects to exceed its natural perils budget again this financial year, despite increasing its disaster allowance to $1.14 billion Australia ($774.2 million) from AUD909 million, Artemis reported. Furthermore, reinsurance costs have increased by around AUD220 million in just three years and all of its attachment points are also higher. In response to the rising inflation and reinsurance costs that are denting its profitability, Insurance Australia has increased property insurance rates by 20% to 30%, and commercial business insurance rates by 15% to 20%.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.