MikhailP, SDF owns 24 underwriting agencies but as I understand them, these are more of an intermediary to offer insurance brokers specialist insurance products, some presumably in niche markets. Highly specialised.
I agree when events such as bushfires, floods or in Melbourne's case an earthquake of 5.9 magnitude (highest ever recorded in our island continent) occur, many householders and businesses reassess insurance cover.
The latter in particular may turn for the first time to brokers if they find searching for a policy that marries their needs at what is perceived an acceptable price too hard.
An occurrence like an earthquake may also see fewer people underinsure, so gross written premiums should rise.
I reckon for most of us (including businesses) insurance is a grudge purchase that we don't like paying, but know it's essential.
One exception is contents insurance for householders that may not be worth the expenditure should one's furniture and other inclusions be old and hence largely depreciated.SDF strikes me as a reasonable hedge against inflation because the insurance industry would increase its premiums so brokers' commissions would keep pace with CPI.
SDF Price at posting:
$4.87 Sentiment: Hold Disclosure: Held
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