IAG’s Australian Property Repair Costs Climb on Bushfires, Supply Issues
06 December 2021
Published by https://www.marketwatch.com/
AUSTRALIA – SYDNEY–Insurance Australia Group Ltd. said its Australian unit is experiencing an increase in property repair costs, partly due to past bushfires.
Speaking Tuesday after the Australian general insurer’s business update, group executive Julie Batch said the property insurance business in Australia has been impacted in a few different ways.
“Interestingly, we are feeling the effects from the bushfires from a couple of years ago, now impacting our ability to source wood as an example,” Ms. Batch said.
Another challenge, she said, is the fact that there has been a need to go offshore to purchase materials.
“We’ve seen an increase in the cost to repair as a result of more dependency than we would normally do, on a global supply chain in property,” Ms. Batch said.
Write to Alice Uribe at alice.uribe@wsj.com
