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To: Dale Baker who wrote (71006)	1/9/2009 11:08:44 AM
From: Dale Baker	Respond to of 118717

UBERRIMA FIDES by John Heath Posted 15 Dec 2008 9:36 AM QBE first to reveal premium percentage rises It is always a satisfying mark to report something ahead of the rest as any humble and modest editor knows. Such it was this week when QBE Australia surprised the nation’s general insurance market by revealing the actual percentage figures it was raising on its premium rates – effective immediately. The rate rise figures were reported exclusively in InsuranceNewsAustralia.com and quickly aroused comments throughout the industry. QBE is the first insurer to put figures on what its rates are going to be. QBE alerted its clients to these premium rises “in the vicinity of 7.5 percent and 10 percent immediately” without nominating particular classes where the rate rises are occurring. As QBE is predominantly an underwriter of non-personal lines, the premium lifts will be noticed firstly by industry and commerce clients before personal lines such as travel insurance customers see the hikes. Other insurers have been tacitly heading toward premium rates rises but they will have to be more open because they certainly will be asked to be so by clients and insurance brokers and other intermediaries. A couple of analysts called in to say that “starting at 5 percent” might have been better – but QBE makes up its own mind and it was somewhat unhappy when it lost a little market share when the industry began rate cutting for market share as the GFC worsened. To presage the inevitable, in October we reported: “The salad days of soft commercial insurance premium rates are about to be dried up by the winds of the global economic turmoil.” Terry Ibbotson, CEO QBE Australia affirmed that all insurance business faced increasing pressures due to the global impacts of cash rates, reinsurance pressures, escalating claims costs and as the forecast increase in storm frequency becomes reality. For any doubters, he confirmed that as a group QBE was performing well and delivered a strong half-year result. Recent acquisitions in Australia, USA and Europe had secured additional distribution and substantial gross written premium in specialist products. Customer initiatives he outlined include: “A focus on the delivery of additional products and enhanced E-business solutions through their online broker platform c.change; further realignment of the business to improve the focus on service, and the introduction of new products such as ‘Extra Home Assurance’ to be launched early 2009.” Mr Ibbotson supported his news saying QBE had another (financially) successful year in 2008 and was “appreciative and proud” that QBE was recognised by NIBA as General Insurer of the year for the 7th consecutive time. One commentator said maybe QBE’s KPI (key performance indicator) helps. But then doesn’t every business, bank, fund manager, other financial service – and even journalism - work on KPI?