Aussies to be blighted by increasing insurance costs

Aussies may be forced to take money from their savings accounts in order to cover the rising cost of insurance premiums.

According to a new study conducted by JP Morgan and Deloitte, insurers across the country are looking to hike their rates by as much as 13 per cent in 2012. This follows on from a sharp ten per cent increase in 2011, which has left many people counting the cost.

Many insurers are attempting to recoup significant losses from last year, when a huge number of home insurance customers received compensation following natural disasters such as the widespread floods and hail storms.

JP Morgan analyst Siddharth Parameswaran told the Sydney Morning Herald that last year's premium hike was not enough to offset the large payouts.

"Whilst we've seen talk of rate increases for a while, it really hasn't been at levels which seem to have had enough of an impact to restore profitability," he was reported as saying.

The general cost of living appears to be hitting Queenslanders hardest, as the Australian Bureau of Statistics revealed that many people in the state were shunning medication and healthcare because they couldn't afford the added expense.

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