GSA is concerned over the impact of the economic downturn and the unfortunate timing of anticipated higher Insurance costs. Historically the pricing cycle for Insurance products tends to run counter-cyclical to the strength of our economy. In other words, insurance prices tend to increase in line with a deteriorating economy – basically, when businesses can least afford it!

Insurers are currently experiencing poor investment returns on top of marginal returns generally. Therefore, it is widely accepted that insurance costs will increase over the ensuing 12-24 months.

Apart from ensuring you are aware of this potential cost increase, we wanted to reassure you, our customers, that GSA is well placed to deliver optimum outcomes in this difficult market. We will leverage off the following strengths:

• Strong relationships with ALL Australian Insurers (and GSA boasts what we believe are disproportionately profitable portfolios).

• Excellent relationships with Lloyds of London market (GSA places significant business with Lloyds and currently wholesales certain products to other brokers on their behalf).

• GSA has an experienced team. Most of us have worked through previous ‘hard’ markets and know how to achieve best outcomes for you. GSA has been operating for just on 20 years.

• GSA is known for employing staff with technical skills. It is now that Underwriters respond to a more technical or scientific approach from brokers. (…any broker can look good in a ‘soft’ market!).

We know the business environment is currently tough and we assure you that GSA is ready to do whatever we possibly can to achieve best possible outcomes for you.

Article by John Hewson (Chairman of GSA) and Paul Hines (CEO of GSA)